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Benny is the manager of an office-support business that supplies copying, binding, and other services for local companies. He must replace a worn-out copy machine
Benny is the manager of an office-support business that supplies copying, binding, and other services for local companies. He must replace a worn-out copy machine that is used for black-and- white copying. He is considering two machines, 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 $619, and there is a cost of $0.040 per page copied. Machine 2 has a monthly lease cost of $685, and there is a cost of $0.025 per page copied. Customers are charged $.14 per page copied. Questions: a. If Benny expects to make 135,000 copies per month, what would be the monthly cost for each machine? b. Based on the total revenue generated by each machine, what machine should Benny select on th basis of net profit per month
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