Should he lease the printer or buy the copies

Assignment Help Management Information Sys
Reference no: EM131131682

1. An office manager is deciding between two different plans for printing equipment. He can either lease the large-scale printer outright at $420 per month, or buy copies from the printing company for $.03 per copy at the end of the month. If he leases the machine, he calculates that supplies will run approximately $2 per every thousand copies. If he pays per copy, the supplies will be included.

a.If he anticipates 10,000 copies per month, should he lease the printer or buy the copies ?

b.Based on past experience, the manager knows that he will have between 3000 and 25,000 copies per month. Create a table for each plan that includes units from 3,000 to 25,000 in increments of 2000 (in your rows) and the corresponding costs for each plan.

c. Chart the two plans. At what unit amount does your decision in Part a change?

d. If the Office Manager decides to sell copies - that he makes from leasing the printer - at 15 cents each, how many copies does he need to sell to Break-even?

Verified Expert

The task consists of a practical problem of management accountancy where the managerial decision or leasing or buying has to be taken after assessing the cost involved of both the projects. The task has been solved with practicals, graphs and decisions where appropriate

Reference no: EM131131682

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