Question 647464: Your department sends it's copying to the photocopy center of your company. The center bills your department $.10 per page. You suggest buying a copier for $3000. With your own copier the cost per page would be $.03. The expected life of the copier is four years. How many copies must you make in the four-year period to justify buying the copier?
Answer by ankor@dixie-net.com(22740)   (Show Source):
You can put this solution on YOUR website! Your department sends it's copying to the photocopy center of your company.
The center bills your department $.10 per page.
You suggest buying a copier for $3000.
With your own copier the cost per page would be $.03.
The expected life of the copier is four years.
How many copies must you make in the four-year period to justify buying the copier?
:
let c = no. of copies to break even
:
.10c = .03c + 3000
.10c - .03c = 3000
.07c = 3000
c = 3000/.07
c = 42857.143 ~ 42,858 copies before it will be a better deal
:
:
We can see this:
.10(42858) = $4,285.80 cost with the old copier
.03(42858) + 3000 = $4,285.74 with the new copier, a 6 cent savings!
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