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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:

Directly Proportional

The relationship between two variables where if one variable increases, the other variable increases by the same factor.

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The total income generated from the sale of goods or services, calculated as the unit price multiplied by the quantity sold.

Constant of Proportionality

The constant of proportionality is the factor that relates two variables that are directly proportional to one another.

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Gases or particles released into the atmosphere from industrial stacks or chimneys.

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