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 $0.04 per page. Total estimated print pages are estimated to be 330,000 pages. Individuals are estimated to use 130,000; Corporate will use 165,000 and 35,000 from the trust area. Assuming a single charging rate is used, what would be the charge per page? (round to the nearest cent)
A)$.04
B)$.25
C)$.21
D)none of the above amounts

Question

Quizplus · Accepted Answer

The charge per page is calculated by dividing the total costs (fixed + variable) by the total estimated print pages. Fixed costs are $69,190, and variable costs are 330,000 pages * $0.04/page = $13,200. Total costs = $69,190 + $13,200 = $82,390. Dividing this by 330,000 pages gives $0.2497 per page, which rounds to $0.25.

Hanover and Trust, a Large Law Firm, Utilizes an Internal