Question
Jerry, the manager of a small printing company, needs to replace a warn out copy machine. He is condsidering two machines; each has a lease
Jerry, the manager of a small printing company, needs to replace a warn out copy machine. He is condsidering two machines; each has a lease cost and a cost per page that is copied:
Machine 1 has a $450 monthly lease with a 2.2 cent per page cost up to 230 pages, and 1.1 cent after that
Machine 2 has a $580 monthly lease with a 1.7 cent per page cost up to 230 page, and 0.6 cent afte that
Jerry knows the break even point is more than 230 pages. 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, what one do you recommend?
How do I do this using Breakeven in Excel?
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