Wilson, Inc -Refer to the Figure

question 5

Multiple Choice

Wilson, Inc., operates a copy business at two different locations. Wilson, Inc., 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 $400,000. Of this amount, $120,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $256,000 and actual fixed costs of $144,000.
Normal and actual activity (copies made) are as follows:
$\begin{array}{lll}&\text { Copy Centre } 1&\text { Copy Centre } 2\\\text { Normal activity (copies) } & 1,200,000 & 800,000 \\\text { Actual activity (copies) } & 1,000,000 & 880,000\end{array}$
-Refer to the figure.What support department costs are NOT allocated to the two copy centres?

• A)$8,000
• B)$16,800
• C)$19,680
• D)$44,000

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Definitions:

Cartel Agreements

Formal agreements among competing firms in an industry to control prices, limit production, or divide markets, often illegal and against antitrust laws.

Oligopolies

Market forms in which a market or industry is dominated by a small number of sellers (oligopolists).

Competitive Outcome

The result achieved in a market where businesses vie for customers by offering better prices, quality, or services, leading to benefits for consumers.

Duopoly Outcome

The result or consequence of a market structure where two companies dominate the supply of a product or service.