Question
Zoe Smith is the manager of a small office support business that supplies copying, binding, and other services forlocal companies.Zoe must replace a worn-out copy
Zoe Smith is the manager of a small office support business that supplies copying, binding, and other services forlocal companies.Zoe must replace a worn-out copy machine that is used for the black and white copying.Two machines are being considered, 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 $600, and there is a cost of $0.010 per page copied.Machine 2 has a monthly lease cost of $400, and there is a cost of $0.015 per page.Consumers are charged $0.05 per page for copies.
Required:
(a.)What is the break-even 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 for each machine?
(d).At what volume (the number of copies) would the two machines have the same monthly cost?What would be the total revenue for this number of copies?
(e).Plot the relevant data on a graph (and based on the response todabove) and show when each machine should be used.
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