Automatic versus Manual Processing Assume Office Depot processes 2,500,000 photocopies per month at its service center. Approximately 50% of the photocopies require collating. Collating is currently performed by high school and college students who are paid $10 per hour. Each student collates an average of 5,000 copies per hour. Management is contemplating the lease of an automatic collating machine that has a monthly capacity of 6,000,000 photocopies, with lease and operating costs totaling $3,000, plus $0.05 per 1,000 units collated. (a) Determine the total costs of collating 1,000,000 and 2,000,000 per month: 1. With student help. 1,000,000 Answer 2,000,000 Answer 2. With the collating machine. 1,000,000 Answer 2,000,000 Answer (b) Determine the monthly volume at which the automatic process becomes preferable to (costs less than) the manual process. Round answer to the nearest whole number. Answer copies
Automatic versus Manual Processing
Assume Office Depot processes 2,500,000 photocopies per month at its service center. Approximately 50% of the photocopies require collating. Collating is currently performed by high school and college students who are paid $10 per hour. Each student collates an average of 5,000 copies per hour. Management is contemplating the lease of an automatic collating machine that has a monthly capacity of 6,000,000 photocopies, with lease and operating costs totaling $3,000, plus $0.05 per 1,000 units collated.
(a) Determine the total costs of collating 1,000,000 and 2,000,000 per month:
1. With student help.
| 1,000,000 | Answer |
| 2,000,000 | Answer |
2. With the collating machine.
| 1,000,000 | Answer |
| 2,000,000 | Answer |
(b) Determine the monthly volume at which the automatic process becomes preferable to (costs less than) the manual process.
Round answer to the nearest whole number.
Answer copies
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