Figure 7-3 Hanover and Trust, a Large Law Firm, Utilizes an Internal

question 105

Multiple Choice

Figure 7-3
Hanover and Trust, a large law firm, utilizes an internal centralized printing center to serve its three departments: Individuals, Corporate, Trust. The costs of the printing department include fixed costs of $69,190 and variable costs of $0.04 per page. Total estimated print pages are estimated to be 330,000 pages. Individuals are estimated to use 130,000; Corporate will use 165,000 and 35,000 from the trust area.
-Refer to Figure 7-3. Assuming a single charging rate is used, if the Corporate Department used 190,000 pages, what would be the printing charges for the Corporate Department? (Round to the nearest cent.)

• A) $47,500
• B) $39,900
• C) $7,600
• D) $42,195

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Definitions:

Buying Process

The series of steps a consumer goes through, from recognizing a need or desire to the final purchase decision, including information search, evaluation of options, and post-purchase evaluation.

Modified Rebuy

A buying situation where an organization makes changes to its previous purchase orders, involving modifications in product specifications, prices, or suppliers.

New Buy

A purchasing situation in which a buyer purchases a product or service for the first time, presenting a significant decision-making process.

Buying Center

A group of individuals within an organization who are responsible for making decisions about significant purchases, evaluating options based on the company's needs.