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Answer the following questions using the information below:
The Charmatz 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
Budgeted amounts are used to calculate the allocation rates.
Actual usage for the year by the Marketing Department was 80,000 copies and by the Operations Department was 360,000 copies.
-If a dual-rate cost-allocation method is used,what amount of copying facility costs will be budgeted for the Operations Department?
Luxury Good
A good for which demand increases more than proportionally as income rises, in contrast to a "necessity good," for which demand is not related to income.
Total Revenue
The total amount of money a company receives from its sales of goods or services, calculated by multiplying the price per unit by the number of units sold.
Demand Elastic
Referring to a situation where the quantity demanded of a good or service significantly changes in response to a change in its price.
Price-Elasticity Coefficient
A numeric value that measures how much the quantity demanded of a good responds to a change in the price of that good, indicative of its price sensitivity.
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