The Copy Department in the College of Business at State

question 158

Multiple Choice

The Copy Department in the College of Business at State University provides photocopying service for both the Marketing and Economics Department.The following budget has been prepared for the year $$\begin{array} { | l | l | } \hline \text { Available capacity } & 6,000,000 \text { pages } \\\hline \text { Budgeted us age: } & \\\hline \text { Marketing } & 3,600,000 \text { pages } \\\hline \text { Economics } & 1,800,000 \text { pages } \\\hline \text { Cost equation } & \$ 120,000 + \$ 0.025 \text { per page } \\\hline\end{array}$$ .If the Copy Department uses a dual rate for allocating its costs based on usage,how much cost will be allocated to the Marketing Department?

• A) $85,000.
• B) $90,000.
• C) $150,000.
• D) $170,000.

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Definitions:

Income

The financial gain received by an individual or entity, typically through wages, investments, or business operations.

Price

The fiscal amount presumed, asked for, or remunerated in return for an item.

Apples

A type of fruit that grows on apple trees, known for its sweet taste and the wide variety of types available.

Utility Function

A mathematical representation of how a consumer derives satisfaction or utility from consuming goods and services.