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1. Assume that your company is considering the lease of one of these HP copiers, and you expect that the average price for a color copy for your company would be $0.110 because you would carefully prioritize color copy jobs and reduce the number of copies requiring a large amount of color. You expect that training your copy center staff to properly use the new copier would cost about $6,150 for materials and lost work time. What is the breakeven number of color copies per year that would make you indifferent between the new HP copier and your current copier

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Answer: 246,000 color copies

Explanation:

Cost of printing color pages using the old machine is not included so we will infer that.

We shall assume the cost of that to be $0.135.

In using this new copier made by HP, the cost saved per copy is:

= 0.135 - 0.110

= $0.025

The breakeven number of color copies that would make you indifferent would be the number of copies that would lead to a savings of $6,150 incurred on account of training the staff:

= 6,150 / 0.025

= 246,000 copies

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