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Question 2: Home Office Supplies (HOS) is evaluating the profitability of leasing a photocopier for...

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Accounting

Question 2: Home Office Supplies (HOS) is evaluating the profitability of leasing a photocopier for its customers to use on a self-serve basis at 10c per copy. The copier may be leased for $400 per month plus 1.5 per copy on a full-service contract. HOS can purchase paper at $5 per 500-sheet ream. Toner costs. $100 per bottle, which in normal use will last for 5000 pages. HOS is allowing for additional costs (including electricity) of 0.5c per copy. How many copies per month must be sold in order to break even? [5 Marks]

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