Answer:
Machine one cost:
= Fixed cost + Variable cost
The Fixed cost is the lease cost and the variable cost is the cost per page copied. The number of pages is 105,000 and the cost per page for machine 1 is $0.030
= 619 + (0.030 * 105,000)
= $3,769 monthly
Machine two cost:
= 675 + (0.028 * 105,000)
= $3,615 monthly