Question

Suppose Margie decides to lease a photocopier and open up a black-and-white photocopying service in her dorm room for use by faculty and students. Her total costs are $300 per month for the lease and $0.02 per copy. If she charges $0.10 per copy, how many copies does she need to make each month to break even?

A) 500 copies
B) 1000 copies
C) 1500 copies
D) 2000 copies

Answer 1

Margie needs to make 3750 copies each month to break even with her photocopying service. This considers her monthly lease of $300 and her cost of $0.02 and charge of $0.10 per copy. The calculation involves equating her total costs to her total revenues and solving for the required number of copies.

Step-by-step explanation:

To calculate the number of copies Margie needs to make to break even, we need to consider both her fixed and variable costs. The fixed cost is the monthly lease of $300, and the variable cost is $0.02 per copy. The price she charges per copy is $0.10. The break-even point is reached when the total cost equals total revenue.

To find the break-even point in terms of the number of copies, we can set up the equation:

300 + (0.02 × number of copies) = (0.10 × number of copies)

Solving for the number of copies:

300 = (0.10 - 0.02) × number of copies

300 = 0.08 × number of copies

number of copies = 300 / 0.08

number of copies = 3750

Therefore, to cover her costs and break even, Margie needs to make 3750 copies per month.