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The center bills your department $0.09 per page. You have investigated the possibility of buying a departmental copier for $4500. With your own copier, the cost per page would be $ 0.03. The expected life of the copier is 6 years. You figure that you must make at least_____ copies per year to justify buying the copier.

2007-01-30 21:47:49 · 2 answers · asked by jose u 1 in Business & Finance Other - Business & Finance

2 answers

12500
cost per annum = $750 ($4500/6)
you save $0.06 per copy ($0.09-$0.03)
in order to justify $750 per annum, you will need to be making 12500 copies (12500 x $0.06 = $750)

2007-01-30 21:52:56 · answer #1 · answered by ? 7 · 0 0

46 pages a year.

let x=amount of pages printed in 6 years.

to justify buying the copier,

cost of printing yourself has to at least equal the cost of outside printing, and so

$4500/X +0.03X = 0.09X
$4500 +0.03Xsquared = 0.09Xsquared
$4500 = 0.06Xsquared
$75000 = Xsquared
X= 273.8
round X up so X=274

so the amount printed a year should be at least 274/6 = 45.7 =46 pages.


hope it's right.

2007-01-31 06:11:34 · answer #2 · answered by electronicdotfly 3 · 0 1

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