The Law Firm of Barnes & Cohen Purchased a New

question 76

Multiple Choice

The law firm of Barnes & Cohen purchased a new $17,600 copier. Copying costs will be shared by the purchasing, accounting, and information technology departments since those are the only departments that will have access to the machine. The company has decided to allocate the copying cost based on the number of copies made by each department. The sales person who sold the copier to the attorneys expects it will generate 1,000,000 copies. The manager of each department has estimated the number of copies that his or her department will make over the life of the copier: $$\begin{array} { l l } \text { Department } & \underline { \text { Copies } } \\\text { Purchasing } & 150,000 \\\text { Accounting } & 450,000 \\\text { Information Technology } & 200,000\end{array}$$ How much overhead will be allocated each time a copy is made by the accounting department?

• A) 2.2 cents
• B) 3.9 cents
• C) 1.76 cents
• D) None of these answer choices are correct.

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Definitions:

Expected Frequency

The theoretical number of times an outcome is anticipated to occur in a statistical experiment based on the total number of observations and the probabilities of outcomes.

Uniformly Distributed

Describes a distribution where all outcomes are equally likely to occur.

Capital Punishment

A legal penalty where a person is sentenced to death by the state as punishment for a crime.

Poisson Distribution

A discrete probability distribution expressing the probability of a given number of events occurring in a fixed interval of time or space, assuming that these events occur with a known constant mean rate and independently of the time since the last event.