Question 1: You are considering opening a small copy shop. The cost of renting a copier for a year is $5000, and it costs $0.03 per copy to operate the copier. Fixed costs associated with running the store will amount to $400 per month. Your store will sell copies on average for $0.10, and it will be open 365 days a year. One copier can produce up to 100,000 copies a year. Hint: these are your assumptions that you must use to solve the following problems.

a. You need to determine the annual profit for one to five copiers rented and daily demands that are 500,1000, 1500, and 2000 copies per day. This means you have to find out the annual profit for each of these combinations of copiers rented and daily demand. [ 4 points]

b. Lets suppose that you were considering renting three copiers, how much daily demand would it take for you to break even? [ 4 points]

c. Plot the profit as a function of the number of copiers for a daily demand of 500 copies, and a daily demand of 2000 copies. Interpret the plots. This is your chance to shine. Using the knowledge you have been taught; in no more than one paragraph, you will discuss trends, directions, and other observations which qualified and competent business analysts are expected to make and report. Keep your remarks short and succinct. [ 4 points]