2-8 utomatic versus Manual Processing Kopy Kat Photocopy Service processes 1,000,000 photocopies per month at its mid- town service center. Approximately 60 percent of the photocopies require collating. Collating is currently performed by high school and college students who are paid $7.50 per hour. Each student collates an average of 5,000 copies per hour. anagement is contemplating the lease of an automatic collating machine that has a monthly capacity of 5,000,000 photocopies, with lease and operating costs to taling $1,450, plus $0.05 per 1,000 units collated. Required: a. Determine the total costs of collating 500,000 and 1,500,000 per months 1. With student help. 2. With the collating machine. b. Determine the monthly volume at which the automatic process becomes prefer c. Should Kopy Kat lease the automatic collating machine at this time? able to the manual process