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	6,000,000	pages
Budgeted usage:
Marketing	3,600,000	pages
Economics	1,800,000	pages
Cost equation	$120,000 + $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 1,500,000 copies during the year?

$112,500.

$132,500.

$92,500.

$77,500.

.