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    Xerox

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    2. Xerox sells both copiers and a toner for their copiers. While customers are not required to buy Xerox toner, most do because specified machines use toner only for that machine. The Xerox toner and machines are closely designed and non-Xerox machines produces inferior copies. Evaluate the statement: "Xerox makes 75 percent of its profits selling toner and 25 percent of its profits selling machines."

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    Solution Preview

    The statement that "Xerox makes 75% of its profits selling toner and 25% of its profits selling machines" is extremely true. When Xerox sells a printer, it is a one time sale for which Xerox makes profit only one time. Moreover, the consumer who buys such expensive machine intends to keep it for a long period of time, say ...

    Solution Summary

    The statement that "Xerox makes 75% of its profits selling toner and 25% of its profits selling machines" is extremely true.

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