Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1-25 zoe Garica is the manager of a small office support business that supplies copying , binding, and other services for local companies. zoe must

1-25

zoe Garica is the manager of a small office support business that supplies copying , binding, and other services for local companies. zoe must replace a worn-out copy machine that is used for black and white copying. two machines are being considered, and each of these has a monthly lease cost plus a cost for each page that is copied. Machine 1 has a monthly lease cost of $600, and there is a cost of $0.010 per page copied. Machine 2 has a monthly lease cost of $400, and there is a cost of $0.015 per page copied. customers are charged $0.05 per page for copies.

A) what is the break-even point for each machine?

B) if zoe expects to make 10,000 copies per month, what would be the cost for each machine?

C) if zoes expects to make 30,000 copies per month, what would be the cost for each machine?

D) at what volume ( the number of copies) would the two machines have the same monthly cost? what would the total revenue for this number of copies?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audits Of 401k Plans

Authors: Deloitte And Touche

2nd Edition

1119722039, 978-1119722038

More Books

Students also viewed these Accounting questions