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Huntsville Office Supplies (HOS) is evaluating the profitability of leasing a photocopier for its customers to use on a self-serve basis at 10 per copy.
Huntsville Office Supplies (HOS) is evaluating the profitability of leasing a photocopier for its customers to use on a self-serve basis at 10 per copy. The copier may be leased for $210 per month plus 1.50 per copy on a full-service contract. HOS can purchase paper at $5 per 250-sheet ream. Toner costs $144 per bottle, which in normal use will last for 4,800 pages. HOS is allowing for additional costs (including electricity) of 0.5 per copy. a. How many copies per month must be sold in order to break even? (Do not round intermediate calculations.) No. of copies per month b. What will be the increase in monthly profit for each 1,000 copies sold above the break-even point? (Do not round intermediate calculations.) Profit increase by $ per month
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