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 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 monthly lease cost and a cost per page that is copied:
Machine 1 has a $368 monthly lease with a 2.9 cents per page cost up to 300 pages, and then 1.9 cents per page after the 1st 300 page.
Machine 2 has a $533 monthly lease with a 1.7 cents per page cost up to 300 pages, and then 1.0 cents per page after the 1st 300 pages
Jerry knows the break-even point is more than 300 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 5.5 cents per copy.Based on this, which machine do you recommend?
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