The Copy Department in the College of Business at State University provides photocopying service for both the Marketing and Economics Department. The following budget has been prepared for the year.

Available capacity 12,000,000 pages

Budgeted usage:

Marketing 4,800,000 pages

Economics 2,400,000 pages

Cost equation $144,000 + $0.025 per page

If the Copy Department uses a dual-rate for allocating its costs, how much cost will be allocated to the Economics Department, assuming the Economics Department actually made 3,000,000 copies during the year?

A-$201,000.

B-$123,000

C-. $105,600

D-. $153,000.