The University Computer Lab Is Having Difficulty Controlling Its Costs

question 2

Multiple Choice

The university computer lab is having difficulty controlling its costs. Analysis showed that a key issue is the cost of printer supplies (ink, paper, and machine repair) . Which strategy is likely to reduce costs the most, if typical student use is 200 copies per month?

• A)Plan A: requiring students to pay 12 cents per copy
• B)Plan B: charging a fee of $20 for the first 100 copies per month, then 10 cents per copy thereafter
• C)Plan C: charging a fee of $10 for the first 50 copies per month, then 15 cents per copy thereafter
• D)Plan D: adding a flat lab fee of $30 per academic term
• E)All of the above

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Definitions:

Accounts Receivable

Money owed to a business by its customers for products or services that have been delivered or used but not yet paid for.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Collection Period

The average number of days it takes a company to collect payments from its credit sales, reflecting the efficiency of its credit and collection policies.

Sales Estimate

An approximation of the number or value of sales over a specific period, often used for planning and budgeting purposes.