Xi Print Operates a Copy Business at Two Different Locations

question 75

Multiple Choice

Xi Print operates a copy business at two different locations. Xi Print has one support department that is responsible for cleaning, service, and maintenance of its copying equipment. The costs of the support department are allocated to each copy centre on the basis of total copies made.
During the first month, the costs of the support department were expected to be $200,000. Of this amount, $60,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $128,000 and actual fixed costs of $72,000.
Normal and actual activity (copies made) are as follows:

$\begin{array}{lll}&\text { Copy Centre } 1&\text { Copy Centre } 2\\\text { Normal activity (copies) } & 600,000 & 400,000 \\\text { Actual activity (copies) } & 500,000 & 440,000\end{array}$
-Refer to the figure.For purposes of performance evaluation,what are the fixed costs allocated to Copy Centre 1?

• A)$30,000
• B)$32,800
• C)$36,000
• D)$37,600

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Definitions:

Alternative-Choice Close

A sales technique where the salesperson presents the prospect with two choices, both leading to a sale, aiming to simplify the decision-making process.

Two Options

In decision making, presenting specifically two choices for easier selection or comparison.

Prospect

A prospect is a potential customer or client who has been identified as fitting a target market or criteria for a product or service.

Motivate

To inspire, stimulate, or encourage an individual or group to take action or to enhance their performance through incentives or intrinsic rewards.