Case Study Essay Example | Topics and Well Written Essays - 500 words - 36

Case Study - Essay ExampleThe expenses that are drawred in buying a upstart or second hand printer are as followsBy comparing the prices above, it is seeming(a) that buying a second hand high speed printer is more constitute sound/cheaper than buying a new high speed printer. However, this printer is four year old, and it is estimated that it leave behind cost the company 15,000 of expenses for repairs and lost business. The expenses incurred in maintaining the second hand printer is large enough to reduce taxation significantly. It is, therefore, not recommendable to obtain a high speed digital printer by buying a second hand Xerox DocuPrint 135MX high speed digital printer.Although a new printer will cost higher than a second hand printer, it will last longer without involving repair and sustentation costs, firearm in the warranty period, and it is also a fixed overhead. The only disadvantage it has is that it will potentially generate 33,950 in revenue. This revenue, howeve r, is the actual profit margin, which is usually accepted at approximately 20 pct profit margin, and this means that it will take the company owner at least seven long time to recover his investment.It is evident from the two illustrations above that both buying a brand new and a second hand high speed digital printer will make the company incur large losses. In order to avoid these loses, I recommend that my brother should acquire the printer on a monthly leasing deal, with a get out clause built in after all year, should the machine not work well, or new versions with new technology are introduced into the market while the printer is on a leasing. Through leasing, repair and maintenance costs are incurred by the leasing company, and this will be additional overhead to be considered by the manager if he wants to buy a new