A company usually processes 20,000 orders at a total cost of $300,000. During the year, only 16,000 orders were processed. What is the cost of resource usage?
A)$300,000
B)$240,000
C)$30,000
D)$60,000

Question

Quizplus · Accepted Answer

The cost of resource usage is directly proportional to the number of orders processed. Since only 16,000 orders were processed during the year, the cost of resource usage would be less than the total cost of $300,000 which is incurred for processing 20,000 orders. To find out the cost of resource usage, we can use the concept of proportionality as follows:
Cost of resource usage / Number of orders processed = Total cost / Total number of orders
Cost of resource usage / 16,000 = $300,000 / 20,000
Cost of resource usage = ($300,000 / 20,000) * 16,000
Cost of resource usage = $240,000
Therefore, the cost of resource usage is $240,000 which is the best choice as given in option B.

A Company Usually Processes 20,000 Orders at a Total Cost