Question
Zoe must replace a worn out copy machine that is used for black and white copying. two machines are being considered, and each of these
Zoe must replace a worn out copy machine that is used for black and white copying. two machines are being considered, and each of these has a monthly lease cost plus a cost for 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 600$, and there is a cost of 0.010$ per page copied. machine2 has a monthly lease cost of 400$, and there is a cost of 0.015$ per page copied. customers are charged .05 per page for copies.
a) what is the breakeven point for each machine
b) if zoe expects to make 10,000 copies per month. what would be the cost for each machine?
c) if zoe expects to make 30,000 copies per month, what would be the cost of each machine?
d) at what volume (the number of copies) would the two machines have the same monthly cost? what would the total revenue for this number of copies?
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