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The Copy Department in the College of Business at State

question 91

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The Copy Department in the College of Business at State University provides photocopying services for both the Marketing and Economics Departments. The following budget has been prepared for the year.
 Available capacity 6,000,000 pages  Budgeted usage:  Marketing 3,600,000 pages  Economics 1,800,00 pages  Cost equation $120,000+$0.025 per page \begin{array} { l c } \text { Available capacity } & 6,000,000 \text { pages } \\\text { Budgeted usage: } & \\\text { Marketing } & 3,600,000 \text { pages } \\\text { Economics } & 1,800,00 \text { pages } \\\text { Cost equation } & \$ 120,000 + \$ 0.025 \text { per page }\end{array}
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If the Copy Department uses a dual rate for allocating its costs based on usage, how much cost will be allocated to the Economics Department?

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Definitions:

Null Hypothesis

A theory positing no substantial variance between designated groups, attributing any noted disparity to errors in sampling or experimentation.

Normal Distribution

A probability distribution, symmetric around the mean, shows that datasets close to the mean are encountered more often than ones farther away.

Goodness-of-fit Test

A goodness-of-fit test is a statistical test used to determine how well a set of observed values fits a specific distribution or model.

Normally Distributed

Characterized by its symmetry around the mean, this probability distribution highlights a more frequent occurrence of data near the mean compared to far from the mean.

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