Reference no: EM131953096

You are in the department responsible for managing all the copying machines for your corporation. • Your company makes 10M copies per year at an average cost of $0.10 per copy = $1M annual cost, which your department pays out of its budget, since it is responsible for all the copy machines • Your manager asks you to study the possibility of installing Copy-tracking mechanisms on the copying machines. The mechanism requires a user to input their employee-ID number before making copies. That allows tracking of costs back to each employee, and hence their own departments. • Other companies have found that tracking costs back to the using departments reduces copy volume by 15%, thus reducing total copy costs. • The Copy-tracking mechanisms would cost $200K/year, total. Your department’s costs would be reduced from $1M/year to $200K/year, because the $1M will be paid by other departments whose users are actually making the copies. It appears the Copy-tracking mechanisms are financially beneficial to your department, since it reduces your department’s costs from $1M to just $200K. Are they financially beneficial to your company?