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Construct a two way profit table

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Reference no: EM131212449

You are thinking of opening a copy shop. It costs $8000 to rent a copier for a year. It costs 0.023 per copy to operate the copier. Other fixed costs of running the store amount to $600 per month. You charge an average of 0.12 per copy. You are open 365 days per year. Each copier can make up to 150,000 copies per year.

  • Using Excel, construct a two way profit table (number of copies on the left running top to bottom and daily demand on the top running from left to right) for 1 to 5 copiers rented and daily demands of 1000, 1500,2000,2500 copies per day. That is Compute annual profit for each of these combinations of copiers rented and daily demand.
  • Given that you rent three copiers, what daily demand for copies will allow you to break even? Draw a break even graph to show this break even relationship.

Reference no: EM131212449

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