Simon Fraser University is considering replacing some Xerox
copies with faster copiers purchased from Kodak. The administration is very concerned
about the rising costs of operations during the last decade.
In order to convert to Kodak, two operators would have to be retrained.
Required training and remodelling would cost $2,000.
Simon Fraser’s three Xerox machines were purchased for $10,000 each, five
years ago. Their expected life was ten years. Their resale value is now $1,000
each and will be zero in five more years. The total cost of the new Kodak equipment
will be $49,000; it will have zero disposal value in five years.
The three Xerox operators are paid $8 an hour each. They usually work a
40-hour week. Machine breakdowns occur monthly on each machine, resulting
in repair costs of $50 per month and overtime of four hours, at time-and-onehalf,
per machine per month, to complete the normal monthly workload. Toner,
supplies, etc., cost $100 a month for each Xerox copier.
The Kodak system will require only two regular operators, on a regular
workweek of 40 hours each, to do the same work. Rates are $10 an hour, and no Simon Fraser University is considering replacing some Xerox
copies with faster copiers purchased from Kodak. The administration is very concerned
about the rising costs of operations during the last decade.
In order to convert to Kodak, two operators would have to be retrained.
Required training and remodelling would cost $2,000.
Simon Fraser’s three Xerox machines were purchased for $10,000 each, five
years ago. Their expected life was ten years. Their resale value is now $1,000
each and will be zero in five more years. The total cost of the new Kodak equipment
will be $49,000; it will have zero disposal value in five years.
The three Xerox operators are paid $8 an hour each. They usually work a
40-hour week. Machine breakdowns occur monthly on each machine, resulting
in repair costs of $50 per month and overtime of four hours, at time-and-onehalf,
per machine per month, to complete the normal monthly workload. Toner,
supplies, etc., cost $100 a month for each Xerox copier.
The Kodak system will require only two regular operators, on a regular
workweek of 40 hours each, to do the same work. Rates are $10 an hour, and no