Answer the Following Questions Using the Information Below:
the Launceston $\quad \$ 40000$

question 45

Multiple Choice

Answer the following questions using the information below:
The Launceston Copy Corporation has a central copying facility.The copying facility has only two users,the Marketing Department and the Operations Department.The following data apply to the coming budget year:
Budgeted costs of operating the copying facility for 200 000 to 300 000 copies:
Fixed costs per year $\quad \$ 40000$
Variable costs 3 cents (.03) per copy
Buageted long-nu usage in copies per year:
Marketing Department 75000 copies
Operations Department 210000 copies Budgeted amounts are used to calculate the allocation rates.
Actual usage for the year by the Marketing Department was 40 000 copies and by the Operations Department was 180 000 copies.
-If a single-rate cost-allocation method is used,what amount of copying facility costs will be budgeted for the Marketing Department?

• A)$12 776
• B)$8400
• C)$7200
• D)$3800

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Definitions:

Capital Budgeting

The process by which a business determines and evaluates potential expenses or investments that are significant in amount.

Project Cash Flows

Refers to the net amount of cash being transferred into and out of a project, considering all revenues, expenses, and capital costs over its life.

Risk

In finance, risk is the potential for financial loss or the variability in the returns of an investment.

Principal

The original amount of money loaned or invested, before any interest or profit is added.