Taylor and King, CPAs Installed a New Computer System

question 64

Multiple Choice

Taylor and King, CPAs installed a new computer system. When the needs of the various divisions were analyzed, it was determined that the Audit Division would require 25% of the capacity, the Tax Division would require 45% of the capacity, and the Business Consulting Division would require 30% of the capacity. The computer system will cost $270,000.
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How much of the computer system's cost will be allocated to the Audit Division?

• A)$90,000.
• B)$67,500.
• C)$121,500.
• D)$81,000.

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Definitions:

Price-elasticity Coefficient

A measure that indicates how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage change.

Midpoint Formula

A method used in mathematics to find the midpoint or center point between two points on a line segment by averaging their x and y coordinates.

Candy Bars

Snack food items made primarily of chocolate and often contain fillers like nuts, caramel, or nougat.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than one indicating a high responsiveness.