Essay
The VP of Finance studied the printing costs at the university and knew it was time for bold, decisive action. The annual fixed cost of printing at the school was $850,000 and the per-page cost was two cents. Fortunately, his brother-in-law happened to own a company that would lease the printers to the university for only $600,000 and charge ten cents per page. At what point would the university be indifferent between owning their printers and leasing their printers?
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