Automatic versus Manual Processing Mid-Town Copy Service processes 2,200,000 photocopies per month at its mid-town service center. Approximately 60 percent of the photocopies require collating. Collating is currently performed by high school and college students who are paid $9 per hour. Each student collates an average of 5,000 copies per hour. Management is contemplating the lease of an automatic collating machine that has a monthly capacity of 5,000,000 photocopies, with lease and operating costs totaling $1,384, plus $0.07 per 1,000 units collated. (a) Determine the total costs of collating 500,000 and 1,400,000 per month: 1. With student help: 500,000 $ 900 1,400,000 $ 2,520 2. With the collating machine: 500,000 $ 1,400,000 $ (b) Determine the monthly volume at which the automatic process becomes preferable to (cost less than) the manual process. copies.