25 Jan You are thinking of opening a small copy shop. It costs $5000 to rent a copier for a year, and it costs $0.03 per copy to opera
- You are thinking of opening a small copy shop. It costs $5000 to rent a copier for a year, and it 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.
- For one to five copiers rented and daily demands of 500, 1000, 1500, and 2000 copies per day, find annual profit. That is, find annual profit for each of these combinations of copiers rented and daily demand.
- If you rent three copiers, what daily demand for copies will allow you to break even?
- 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.
Please check the attach excel. You must use the requested method to solve the problem with formula, graph or as requested.
Sheet1
| Copy shop |
| Inputs |
| Yearly rental cost |
| Other monthly fixed costs |
| Cost per copy |
| Charge per copy |
| Days per year |
| Months per year |
| Copies per copier per year |
| Profit model |
| Copiers rented (trial value) |
| Daily demand (trial value) |
| Copies made |
| Annual profit |
| Part (a): Use a two-way data table (copies rented across the top, daily demand aloing the side) |
| Part (b): Use Goal Seek |
| Copiers rented (trial value) |
| Daily demand (trial value) |
| Copies made |
| Annual profit |
| Part (c): Use a two-way data table to get data for graph |
| Copiers rented (trial value) |
| Daily demand (trial value) |
| Copies made |
| Annual profit |
