A photocopier company ABC has as part of its sales policy the placement of coin-operated copiers in busy areas. Customers pay for each photocopy 0.2 euros and the shop that owns the space in which the photocopier is housed collects 0.02 euros per photocopy. The photocopier company undertakes to provide the photocopier, paper, copier ink as well as its maintenance. The company preventively maintains the machine once a month. The cost of a maintenance visit is 600 euros. The cost of copier paper and ink has been calculated at 0.06 euros per photocopy. The company has calculated that the fixed cost of the copier is its depreciation, which is estimated at 24,000 euros annually. The capacity of a photocopier is about 40000 photocopies per month.

Calculate the number of photocopies that would have to be produced by a photo copy machine on a monthly basis in order for the photocopier company to place it in a location.

Answer rating: 100% (QA)

Lets break down the costs and revenues Revenues per photocopy Customer payment 020 euros Shop commis... View the full answer