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You are thinking of opening a small copy shop. It costs $5,000 to rent a copier for a year and it costs $0.03 per copy
You are thinking of opening a small copy shop. It costs $5,000 to rent a copier for a year and it costs $0.03 per copy (including paper) to operate the copier. Other fixed costs of running the store will amount to $400 per month. You plan to charge an average of $0.10 per copy, and the store will be open 365 days per year. Each copier can make up to 100,000 copies per year.
If you rent three copiers, what daily demand for copies will allow you to break-even?
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