Quantitative analysis for decision making

Zoe Garcia 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 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 copied. Customers are charged $0.05 per page for copies.

 

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a. What is the break-even point for each machine?

b. If Zoe expects to make 20,000 copies per month, what would be the cost for each machine?

c. If Zoe expects to make 50,000 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 the total revenue be for this number of copies? (CLO 1,5)

 

 

 Paper Specifics

Although this is a working paper it is also a research paper; therefore, it should be developed, organized and presented using APA formatting guidelines – including the use of a title page, citations, headings, tables, figures, references and appendices (if applicable); be sure to cite at least three scholarly researched sources. 

Any calculations and graphs may be done in Excel, and then transferred to a Word document. All calculations should be clearly explained as to your assumptions and how you arrived at your answers.

Note: Though the names of the teams in the case may be familiar, they are purely fictional; do not use external sources that discuss teams with similar names to support your analysis or any conclusions you draw.

Neither an abstract or running head is necessary for this assignment.

The submitted assignment MUST BE a Word Document. (SLO11)

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