- This topic has 3 replies, 2 voices, and was last updated 7 months ago by
.
- Posts
Double Co provides a photocopying service for clients at a price of $0.10 per copy. It needs to choose which of two new photocopier models to rent. The costs of each photocopier model are given in the following table:
Photocopier model S T
Annual rental cost $10,000 $8,000
Cost per copy $0.03 $0.05
What is the minimum number of copies per year at which model S would be preferred to model T?A.100,001
B.142,857
C.160,000
D.150,000Doubt:
Actually what is the question referring to ask?
The solution provided to the examiner report is also quite confusing.
Can you please make me understand it in a easy way?To determine the minimum number of copies per year at which model S would be preferred to model T, we need to compare the total costs of both models and find the point where the cost of model S becomes less than the cost of model T.
Total cost for model S $10,000 + $0.03x
Total cost for model T$8,000 + $0.05x
Subtract 2,000 < 0.02x
etcIt will find the value of x and it will be 100,000 but the answer is 100,001.
How to know this if the question was in fill in the blanks form?
- You must be logged in to reply to this topic.