Instructions

Answer the following question and upload your Excel solution file. We will discuss in class.

Unit $1$ Practice Question $1$

You are thinking of opening a small copy shop. It costs $$5000$ to rent a copier for a year, and it costs $$0\mathrm{.}03$ per copy to operate the copier. Other fixed costs of running the store will amount to $$400$ per month. You plan to charge an average of $$0\mathrm{.}10$ per copy, and the store will be open $365$ days per year. Each copier can make up to $100,000$ copies per year.

For one to five copiers rented and daily demands of $500,1000,1500,$ and $2000$ copies per day, find annual profit. That is$,$ find annual profit for each of these combinations of copiers rented and daily demand.

If you rent three copiers, what daily demand for copies will allow you to break even?

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