Wilson and Lewis,a large law firm,utilizes an internal centralized printing centre 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 the figure.If the Corporate Department used 190,000 pages,what would be the printing charges for the Corporate Department (rounded to the nearest dollar)?

Question

Quizplus · Accepted Answer

The total cost includes fixed costs and variable costs. Fixed costs are $69,190. Variable costs for Corporate Department are 190,000 pages * $0.04 = $7,600. Total pages used by all departments are 130,000 + 190,000 + 35,000 = 355,000. The fixed cost per page is $69,190 / 355,000 = $0.1949. Total cost for Corporate is (190,000 * $0.04) + (190,000 * $0.1949) = $47,500.

Wilson and Lewis,a Large Law Firm,utilizes an Internal Centralized Printing