Question
A photocopier company ABC has as part of its sales policy the placement of coin-operated copiers in busy areas. Customers pay for each photocopy 0.2
A photocopier company ABC has as part of its sales policy the placement of coin-operated copiers in busy areas. Customers pay for each photocopy 0.2 euros and the shop that owns the space in which the photocopier is housed collects 0.02 euros per photocopy. The photocopier company undertakes to provide the photocopier, paper, copier ink as well as its maintenance. The company preventively maintains the machine once a month. The cost of a maintenance visit is 600 euros.The cost of copier paper and ink has been calculated at 0.06 euros per photocopy. The company has calculated that the fixed cost of the copier is its depreciation, which is estimated at 24,000 euros annually. The capacity of a photocopier is about 40000 photocopies per month.
When the salesperson of the photocopier company ABC visited a bookstore in order to renew the annual agreement of the photocopier, the manager of the bookstore counter-suggested that instead of charging 0.02 euros per photocopy, he should collect 500 euros per month as rent for the space. What would you say to the manager of the bookstore if you were the company's salesperson and you knew that 280,000 photocopies were produced at that particular bookstore last year.
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