The Copy Department in the College of Business at State

question 10

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. If the Copy Department uses a dual-rate for allocating its costs,how much cost will be allocated to the Marketing Department,assuming the Marketing Department actually made 3,000,000 copies during the year?

• A)$135,000.
• B)$150,000.
• C)$155,000.
• D)$170,000.

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Definitions:

Total Revenue

The total amount of money a firm receives by selling goods or services.

Substitutes

Goods or services that can be used in place of each other, offering similar benefits to consumers.

Elastic Demand

A situation where the demand for a product significantly changes in response to changes in its price.

Total Output

The total quantity of goods and services produced within an economy over a specific period of time.