Determine the break-even point in terms of number of copies

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Jerry, the manager of a small printing company, needs to replace a worn out copy machine. He is considering two machines; each has a monthly lease cost and a cost per page that is copied: " Machine 1 has a $430 monthly lease with a 2.0 cent per page cost up to 230 pages, and then 1.0 cent per page after the 1st 230 pages. " Machine 2 has a $590 monthly lease with a 1.5 cent per page cost up to 230 pages, and then 0.5 cent per page after the 1st 230 pages. Jerry knows the break-even point is more than 230 pages for each machine. Determine the break-even point (per month) in terms of the number of copies for each machine if Jerry charges customers 5.0 cents per copy. Based on this, which machine do you recommend?

Reference no: EM131991496

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