Zoe Smith is the manager of a small office support business that supplies copying,

binding, and other services for local 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\mathrm{.}010$ per page

copied. Machine $2$ has a monthly lease cost of $$400,$ and there is a cost of $$0\mathrm{.}015$ per

page. Consumers are charged $$0\mathrm{.}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 to d above$)$ and show

when each machine should be used