Biology Forums - Study Force

FastPrint Company leases a machine that stuffs, seals, and stamps envelopes in one process. FastPrint's lease agreement calls for a base charge of $4,000 per year plus $0.25 for every envelope over 1,000 the machine processes per month.

Required:

a.	What is the firm's total annual cost for the lease if a total of 2,500 envelopes are

processed
each month?

b.	What is the firm's total processing cost per envelope at a level of 2,500 envelopes

processed
each month?

c.	What is the firm's processing cost per envelope if only 1,500 envelopes are processed

each month?

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