We are thinking of opening a small copy shop. It costs us $5000 to rent a copier for a year. It costs us $0.03 per copy to operate the copier. Other fixed costs of running the store amount to $400 per month. We charge an average of $0.10 per copy. We are open 365 days per year. Each copier can make up to 100,000 copies per year. Formulate a model for annual profit.a. Create a two-way table for 1 to 5 copiers rented and daily demands of 500, 1000, 1500, and 2000 copies per day. That is, compute annual profit for each of these combinations of copiers rented and daily demand.b. If we rent three copiers, what daily demand for copies will allow us to break even?c. Using the data table from part a, chart profit as a function of the number of copiers; for a daily demand of 500 copies, and for a daily demand of 2000 copies. Show both lines on the same chart. Interpret your results.
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We are thinking of opening a small copy shop. It costs us $5000 to rent a copier for a year. It costs us $0.03 per copy to operate the copier. Other fixed costs of running the store amount to $400 per month. We charge an average of $0.10 per copy. We are open 365 days per year. Each copier can make up to 100,000 copies per year. Formulate a model for annual profit.a. Create a two-way table for 1 to 5 copiers rented and daily demands of 500, 1000, 1500, and 2000 copies per day. That is, compute annual profit for each of these combinations of copiers rented and daily demand.b. If we rent three copiers, what daily demand for copies will allow us to break even?c. Using the data table from part a, chart profit as a function of the number of copiers; for a daily demand of 500 copies, and for a daily demand of 2000 copies. Show both lines on the same chart. Interpret your results.
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