Date: April 18, 2012
To: Samuel Neesen, Vice President
From: Monica Cho, Marketing MC
Subject: Saving Time and Money on Copying
We are losing money on our current copy services and wasting the time of employees as well. Because our aging Canon copier is in use constantly and can’t handle our growing printing volume, we find it increasingly necessary to send major jobs out to Copy Quick. Moreover, whenever we need colour copies, we can’t handle the work ourselves. Just take a look at how much we spend each month for outside copy service:
Copy Costs: Outside Service
10,000 B&W copies/month made at Copy Quick $700.00
1,000 colour copies/month, $0.25 per copy(avg.) $250.00
Salary costs for assistants to make 32 trips $480.00
Total $1,430.00
To save time and money, I have been considering alternatives. Large-capacity colour laser copiers with multiple features(copy, e-mail, fax, LAN fax, print, scan) are expensive. However, re conditioned copiers with all the features we need are available at attractive prices. From Copy City we can get a fully remanufactured Xerox copier that is guaranteed and provides further saving because solid-colour ink sticks cost a fraction of laser toner cartridges. We could copy and print in colour for roughly the same cost as black and white. After we make an initial payment of $300, our monthly costs would look like this:
Copy Costs: Remanufactured Copier
Paper supplies for 11,000 copies $160.00
Ink sticks and copy supplies $100.00
Labour of assistants to make copies 150.00
Monthly financing charge for copier (purchase price
Of $3,105-$300 amortized at 10% with 36 payments) 93.74
Total