0% Plagiarism Guaranteed & Custom Written

In the early 1960s, the Xerox Corporation faced

24 / 01 / 2019 Assignments

This paper circulates around the core theme of In the early 1960s, the Xerox Corporation faced together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 59. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.

In the early 1960s, the Xerox Corporation faced

In the early 1960s, the Xerox Corporation faced the following pricing problem for its copying machines (there was hardly any competition then). There were two segments of potential users, the large users –whose copying needs were 20,000 copies per year and the small users — whose copying needs were 2,000 copies per year. Xerox found that a large userwould be willing to pay as much as $25,800 to buy a Xerox machine provided supplies from Xerox were free of charge over the life of the machine; similarly, a small user would be willing to buy a Xerox machine for $6,700 provided Xerox supplies free supplies. The expected life of a machine is 5 years. There are equal numbers of large and small users. The total number of users is 200.Xerox’s marginal cost of producing each of these machines was estimated to be $1,900. Its marginal cost of paper was $0.03 per sheet. Xerox used a 10% discount rate, i.e., if it generated an income of $1 each year for 5 years, then its present value of that income stream is 1/1.10+1/1.102+…+1/1.105)=$3.79(1) What should be the selling price of these machines (bundled with paper) if Xerox decided to go with single price (assume that everyone pays the same price and the buyers must pay immediately).(2) Xerox wonders if it can make more money leasing the machines instead of selling them. The leasing policy will involve a yearly rental charge (payable at the end of each year) and a charge per copy made (monitored via the copy meter on the machines) — cumulated over each year and payable at the end of the year. Only one leasing plan — i.e., a single rental charge and a single per-copy charge — is being contemplated. What should be Xerox’s leasing policy? (Assume that each user also uses a 10% discount rate).(3) Explain in a few words why the leasing plan does better than the single price plan?


100% Plagiarism Free & Custom Written


International House, 12 Constance Street, London, United Kingdom,
E16 2DQ

Company # 11483120

STILL NOT CONVINCED?

We've produced some samples of what you can expect from our Academic Writing Service - these are created by our writers to show you the kind of high-quality work you'll receive. Take a look for yourself!

View Our Samples

Benefits You Get

  • Free Turnitin Report
  • Unlimited Revisions
  • Installment Plan
  • 24/7 Customer Support
  • Plagiarism Free Guarantee
  • 100% Confidentiality
  • 100% Satisfaction Guarantee
  • 100% Money-Back Guarantee
  • On-Time Delivery Guarantee
FLAT 25% OFF ON EVERY ORDER. Use "FLAT25" as your promo code during checkout