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 monthly
Jerry, the manager of a small printing company, needs to replace a worn out copy machine. He is considering two machines; each has a monthly lease cost and a cost per page that is copied: " Machine 1 has a $430 monthly lease with a 2.0 cent per page cost up to 230 pages, and then 1.0 cent per page after the 1st 230 pages. " Machine 2 has a $590 monthly lease with a 1.5 cent per page cost up to 230 pages, and then 0.5 cent per page after the 1st 230 pages. Jerry knows the break-even point is more than 230 pages for each machine. Determine the break-even point (per month) in terms of the number of copies for each machine if Jerry charges customers 5.0 cents per copy. Based on this, which machine do you recommend?
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