Use the Graphical Approach to CVP Analysis to Solve the Following

question 134

Short Answer

Use the graphical approach to CVP analysis to solve the following problem.
Huntsville Office Supplies (HOS) is evaluating the profitability of leasing a photocopier for its customers to use on a self-serve basis at 10′ per copy. The copier may be leased for $300 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 5,000 pages. HOS is allowing for additional costs (including electricity) of 0.5′ per copy.
a) How many copies per month must be sold in order to break even?
b) What will be the increase in monthly profit for each 1,000 copies sold above the break-even point?

---

Definitions:

Psychoanalytic Therapists

Mental health professionals who employ theories and techniques based on Freudian and post-Freudian psychology to treat patients.

Define Success

A process of achieving one's goals, aspirations, or standards, often marked by a sense of fulfillment or accomplishment.

Performance Goals

Targets or objectives set to achieve specific standards of competence within a given task or activity.

Striving

The act of making great efforts towards achieving a goal or reaching a higher standard.