You are thinking of opening a small copy shop
You are thinking of opening a small copy shop. It |
costs $5000 to rent a copier for a year and costs $0.03 |
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 $0.10 per copy, and the |
store will be open 365 days per year. Each copier can |
make up to 100,000 copies per year.
|
a. For 1 to 5 copiers rented and daily demands of |
500, 1000, 1500, and 2000 copies per day, compute |
annual profit. That is, compute annual profit for |
each of these combinations of copiers rented and |
daily demand. (10pts)
|
b. If you rent 3 copiers, what daily demand for copies |
will allow you to break even? (10pts) |
c. Graph profit as a function of the number of copiers |
for a daily demand of 500 copies; for a daily demand of 2000 copies. Interpret your graphs. (10pts
|
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