Automatic versus Manual Processing Mid-Town Copy Service processes 1,800,000 photocopies per month at its mid-town service...

  

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Automatic versus Manual Processing Mid-Town Copy Service processes 1,800,000 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 $9 per hour. Each student collates an average of 5,000 copies per hour. Management is contemplating the lease of an automatic collating machine that has a monthly capacity 5,000,000 photocopies, with lease and operating costs totaling $1,056, plus $0.04 per 1,000 units collated (a) Determine the total costs of collating 500,000 and 1,300,000 per month: 1. With student help: 500,000 $ 1,300,000 $ 2. With the collating machine: 500,000 $ 1,300,000 $ Automatic versus Manual Processing Mid-Town Copy Service processes 1,800,000 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 $9 per hour. Each student collates an average of 5,000 copies per hour. Management is contemplating the lease of an automatic collating machine that has a monthly capacity 5,000,000 photocopies, with lease and operating costs totaling $1,056, plus $0.04 per 1,000 units collated (a) Determine the total costs of collating 500,000 and 1,300,000 per month: 1. With student help: 500,000 $ 1,300,000 $ 2. With the collating machine: 500,000 $ 1,300,000 $

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