7. Paula is an office manager for ABC Advertising. She has been tasked with finding a copy machine that falls within a budget of $750 per month. She finds a company that will lease the machine for $275 a month. Each copy costs 4¢ and a ream of 500 sheets of paper costs $5.00. If she estimates that they will make 10,500 copies per month, is leasing this machine a good choice?
we want to know whether leasing fits the budget.
275 + 10500*.04 + (10500/500)*5.00 = 800
Better find some way to save $50/month
To determine whether leasing the copy machine is a good choice for Paula, we need to calculate the total cost of leasing the machine and compare it to the budget of $750 per month.
First, let's calculate the monthly cost of leasing the machine:
Leasing cost per month = $275
Next, let's calculate the cost of copies:
Cost per copy = $0.04
Number of copies per month = 10,500
Total cost of copies per month = Cost per copy * Number of copies per month
Now, let's calculate the cost of paper:
Cost per ream of paper = $5.00
Number of reams of paper per month = Number of copies per month / 500
Total cost of paper per month = Cost per ream of paper * Number of reams of paper per month
Finally, let's calculate the total cost of leasing the machine per month:
Total cost of leasing the machine per month = Leasing cost per month + Total cost of copies per month + Total cost of paper per month
If the total cost of leasing the machine per month is less than or equal to the budget of $750, then leasing this machine is a good choice.
You can calculate the values mentioned above using a simple spreadsheet or a calculator to determine whether leasing the copy machine is a good choice.