Your company leases a copier. The contract states that you must pay the leasing

Question

Your company leases a copier. The contract states that you must pay the leasing company $3,000 per year and $.005 per copy.

Required:

A. Write the equation to predict estimated total lease cost. (Give your answers to three decimal places, if necessary.) Y = $ + $ x B. Compute the estimated total costs if: i. 10,000 copies are made. $ ii. 50,000 copies are made. $ C. Compute the estimated cost per unit if: i. 10,000 copies are made. $ per copy (to three decimal places) ii. 50,000 copies are made. $ per copy (to three decimal places)

Explanation / Answer

Answer

Working

Equation = $ 3000 + $ 0.005x

Estimated total costs if 10,000 copies are made = $ 3000 + $ 0.005x

Estimated total costs if 10,000 copies are made = 3000 + 0.005*10000

Estimated total costs if 10,000 copies are made = $ 3050

Estimated total costs if 50,000 copies are made = $ 3000 + $ 0.005x

Estimated total costs if 50,000 copies are made = 3000 + 0.005*50000

Estimated total costs if 50,000 copies are made = $ 3250

Estimated cost per unit if 10,000 copies are made = Estimated total costs if 10,000 copies are made /10000

Estimated cost per unit if 10,000 copies are made = 3050/10000

Estimated cost per unit if 10,000 copies are made = 0.305

Estimated cost per unit if 50,000 copies are made = Estimated total costs if 50,000 copies are made /50000

Estimated cost per unit if 50,000 copies are made = 3250/50000

Estimated cost per unit if 50,000 copies are made = 0.065

A. Write the equation to predict estimated total lease cost. (Give your answers to three decimal places, if necessary.) Y = $ 3000 + $ 0.005x B. The estimated total costs if: i. 10,000 copies are made. $ 3050 ii. 50,000 copies are made. $ 3250 C. The estimated cost per unit if: i. 10,000 copies are made. $ 0.305 per copy (to three decimal places) ii. 50,000 copies are made. $ 0.065 per copy (to three decimal places)

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