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Thompson Dental is deciding between two lease options for a new copier. They anticipate making 22,500 copies spread evenly over the course of the year. Which of the following options should they choose if they want to save the most money on an annual basis, and how much money will they save?
Option 1: Monthly lease: $225, Included copies: 1,500/month, Additional copies: $0.15 per copy
Option 2: Monthly lease: $250, Included copies: 1,800/month, Additional copies: $0.02 per copy
Suggested Answer: D
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30 comments · newest first
ME
Meaghan
10 months ago
Just did the math, and Option 2 saves way more!
LE
Leanora
10 months ago
I think Option 1 is the better deal.
KE
Kenneth
10 months ago
Wait, how can Option 1 save $300? That seems off.
ZO
Zoila
10 months ago
I agree, Option 2 looks like the clear winner here!
ON
Ona
11 months ago
Option 2 is definitely cheaper overall!
JO
Joesph
11 months ago
I think I remember that the total cost includes both the lease and any additional copies. I just hope I can remember how to break it down properly during the exam!
FR
Francoise
11 months ago
This question reminds me of a similar practice problem we did last week. I feel like I should lean towards Option 2, but I’m not completely confident in my calculations.
CE
Cecil
11 months ago
I think Option 2 might be better since it has a higher included copy limit, but I need to double-check the math on the extra costs.
FI
Filiberto
12 months ago
I remember calculating costs for lease options in class, but I'm not sure how to factor in the additional copies correctly.
LA
Lashawn
12 months ago
Wait, I'm not so sure. I'm still trying to wrap my head around all the details. Maybe I should re-read the question and options a few more times to make sure I'm not missing anything.
CA
Caren
12 months ago
I think I've got it! Option 2 is the way to go. The lower additional copy cost more than makes up for the higher monthly lease, resulting in $189 in annual savings.
MO
Moira
1 year ago
Okay, let's see. Option 1 has a higher monthly lease but lower additional copy costs, while Option 2 has a lower monthly lease but higher additional copy costs. I'll need to crunch the numbers to figure out which one is better.
JE
Jesusa
1 year ago
Hmm, this seems like a tricky one. I'll need to carefully calculate the total cost for each option to determine which one saves the most money.
LA
Latrice
1 year ago
I bet the right answer involves a lot of Excel spreadsheets and highlighters. Accountants must love these kinds of questions.
FR
Francisca
1 year ago
This is like a real-life version of that old copier pricing riddle. I wonder if the answer will be as mind-bending as that one.
CH
Cherilyn
1 year ago
I'm not sure, but I think Option 2 will save them $189 annually.
JE
Jeannine
1 year ago
I agree with Cordelia. Option 2 seems like the better choice for saving money.
CO
Cordelia
1 year ago
Option 2 has a lower cost per additional copy, so they will save more money.
RE
Rebbecca
1 year ago
Wait, did they say 22,500 copies spread evenly? That's 1,875 copies per month. Option 2 has 1,800 included, so they'll be paying for a lot of extras. I'm going with Option 1.
DE
Devorah
1 year ago
Hmm, I don't know. The monthly lease on Option 2 is $25 more. That's a lot of extra cash over the year. I'll have to crunch the numbers carefully.
AR
Ardella
1 year ago
User 3: I think Option 2 could save us more money in the long run.
MO
Mollie
1 year ago
User 2: Option 2 might still be the better choice if the additional copy cost is lower.
SI
Silvana
1 year ago
User 2: That's true, but the cost per additional copy is higher for Option 2.
ME
Merissa
1 year ago
User 1: Option 2 has more included copies, so you might not need to pay for additional copies as often.
TE
Teddy
1 year ago
User 1: Option 2 has a higher monthly lease, but it includes more copies.
EL
Elli
1 year ago
Why do you think so, Cordelia?
CO
Cordelia
1 year ago
I think they should choose Option 2.
RE
Rex
1 year ago
Option 2 for sure! That $0.02 per additional copy is a steal compared to the $0.15 on Option 1. I'm saving big bucks here.
FR
Freeman
1 year ago
User 2: I agree, the lower cost per additional copy really makes a difference in the long run.
VI
Vincenza
1 year ago
User 1: Option 2 is definitely the better choice. Those savings add up!