Kramer & Leonard SAT
How would you answer this question?
Your teacher instructs you to purchase 240 pens and 6 staplers. Pens are purchased in sets of 12 for $2.35 per dozen. Staplers are sold in sets of 2 for $12.95. How much will purchasing these products cost?
D. None of the above
Algebraically, and with only the information shown, the answer would be A; however, the true cost of purchasing these items is much different. The reality is D is a better answer. In fact, the cost may very well be in the hundreds of thousands. First, if you have to drive across town to purchase your supplies, the costs of your drive should also be included. The costs of operating your vehicle could easily run $24 just for fuel and maintenance. There is also a certain risk involved in the operation of a vehicle that increases liability -- especially for business owners. In addition, Kramer & Leonard logistically is a greener approach. Since we are delivering in the area, our vehicles do not travel nearly as far.
Being a computer guru, the marketing department asks you to purchase a new printer. They make about 10,000 prints per month in color and 30,000 prints in black and white. The department found a $139.00 inkjet printer that is the lowest price. How would you help them save money?
A. Purchase the $139.00 inkjet printer. It is the lowest price.
B. Ask them to purchase a refurbished unit to save even more.
C. Call Kramer & Leonard and have a print assessment performed.
D. Instruct them to stop printing.
Answer A may be the lowest price that may be found for the printer. It is unlikely it will be the lowest Total Cost of Ownership. Purchasing the printer based on the printer price alone ignores the true cost of the unit: how much does it cost to operate? In general, this department will pay up to $7,000 a month to operate their $139 unit. The small unit in this scenario is unlikely to last very long with the higher volumes. A Kramer & Leonard print assessment will help identify these costs and allow your organization to review it's total cost. In this case, a laser printer would be a more likely choice.
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