Question
Jerry, the manager of a small printing company, needs to replace a worn out copy machine. He is considering two machines; each has a lease
Jerry, the manager of a small printing company, needs to replace a worn out copy machine. He is
considering two machines; each has a lease cost and cost per page that is copied:
Machine 1 has a $470 monthly lease with a 2 cent per page cost up to 220 pages, and 1 cent
after that.
Machine 2 has a $510 monthly lease and a 1.5 cent per page cost up to 220 pages, and 0.5 cent
after that.
Jerry knows the break even point is more than 220 cases.
Determine the break even point (per month in terms of number of copies) for each machine if Jerry
charges customer 5 cents per copy. Based on that, which one do you recommend?
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