Dunst and Dafoe Copy Shop (D&D) provides photocopying service. Next year, D&D estimates it will copy 2,400,000 pages at a price of $0.08 each in the coming year. Product costs include:

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Direct materials Direct labor Variable overhead Total fixed overhead $0.020 $0.004 $0.001 $50,000 There is no variable selling expense; fixed selling and administrative expense totals $21,500.