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Modeling the Cost of Copying
A company can rent a copy machine for five years from American Business Machines for $105 per month plus $0.08 per copy. The same copy machine can he purchased for $6500 with a per copy cost of $0.04 plus $25 per month for a maintenance contract. After five years the copier is worn out and worthless. To help the company make its choice. ABM sent the accompanying graph.
a) Write a formula for the total cost of renting and using the copier for five years in terms of the number of copies made during five years.
b) Write a formula for the total cost of buying and using the copier for five years in terms of the number of copies made during five years.
c) For what number of copies does the total cost of renting exceed S 10.000?
d) For what number of copies docs the total cost of buying exceed $10,000?
e) Use an absolute value inequality and solve it to find the number of copies for which the two plans differ by less than $1000.
f) For what number of copies is the cost of renting equal to the cost of buying?
g) If the company estimates that it will make between 40.000 and 50.000 copies in five years, then which plan is better?
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