Queens Mortgage Brokers is considering replacing its copier which also serves as their printer and fax machine.
Question:
Queen’s Mortgage Brokers is considering replacing its copier which also serves as their printer and fax machine. Paperclip Inc has provided them with 3 options, Paperclip supplies:
the equipment, paper, supplies, and service for $0.085/page
equipment, paper, supplies and service for a fixed fee of $185/month + $0.06/page
equipment, and service for $450/month and Queen’s supplies their own supplies and paper. Queen’s estimates their cost to be $0.035/page
a. Construct the cost functions for each of the options.
b. At what printing volume is each option preferable?
c. Graph the cost functions on a single graph using Excel. Your graph should include the volumes that you found in part b. insert your graph here.
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd Canadian edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang-Hsuan Chen, Gail Cook