1) Picbook Company's printing department, which does almost all of the printing for the customer service department and the administrative department, budgets the following costs for the year, based on the expected activity ofcopies:

Salaries (fixed) $83,250

Employee benefits (fixed) 10,000

Depreciation of copy machines (fixed) 10,000

Utilities (fixed) 5,000

Paper (variable, 1 cent per copy) 50,000

Toner (variable, 1 cent per copy) 50,000

The costs are assigned to two cost pools, one for fixed and one for variable costs. The costs are then assigned to the customer service department and the administrative department. Fixed costs are assigned on a lump-sum basis, 40 percent to sales and 60 percent to administration. The variable costs are assigned at a rate of 2 cents per copy.

Assumingthe following copies were made during the year, 2,911,250 for customer service and 2,419,750 for administration, calculate the printing department costs allocated to sales. Round to two decimal places.

2) Morgan is entering her junior year as an business major and has a number of options for his summer break. Her options for the 3 month break follow:

(1) Work full time at a local business making $2,900 per month.

(2) Take a summer class which will cost $800 and work half time making $1,100 per month.

(3) Take a class at a cost of $800 and not work at all during the summer.

Morgan's incremental profit or loss if he chooses option 2 over option 1 would be?

Round to two decimal places.