Answered step by step
Verified Expert Solution
Question
1 Approved Answer
supplies copying, binding, and other services for local companies. He must replace a worn-out copy machine that is used for black-and-white copying. He is considering
supplies copying, binding, and other services for local companies. He must replace a worn-out copy machine that is used for black-and-white copying. He is considering two machines, and each of these has a monthly lease cost plus a cost for each page that is copied. Machine 1 has a monthly lease cost of $639, and there is a cost of $0.030 per page copied. Machine 2 has a monthly lease cost of $747, and there is a cost of $0.045 per page copied. Customers are charged $.12 per page copied. Questions: a. If Benny expects to make 175,000 copies per month, what would be the monthly cost for each machine? b. Based on the total revenue generated by each machine, what machine should Benny select on the basis of net profit per month? (round your answers to the highest whole number) Question \#A Question \#B Select Machine \#2 with 5,889 profit Machine \#1 Cost =5,889; Machine \#2 Cost =8,622 Machine \#1 Cost =8,622; Machine \#2 Cost =5,889 Select Machine \#1 with 14,840 profit Machine \#1 Cost =6,019; Machine \#2 Cost =4,060 Machine \#1 Cost =12,881; Machine \#2 Cost =14,840 Select Machine \#2 with 14,840 profit Select Machine \#1 with 12,378 profit Select Machine \#1 with 15,111 profit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started