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The Copy Department in the College of Business at State University provides photocopying services for both the Marketing and Economics Departments. The following budget has
The Copy Department in the College of Business at State University provides photocopying services for both the Marketing and Economics Departments. The following budget has been prepared for the year. Available capacity 7,400,000 pages Budgeted usage: Marketing 4,900,000 pages Economics 2,450,000 pages $159,000 + $0.030 per page Cost equation If the Copy Department uses a dual rate for allocating its costs based on usage, how much cost will be allocated to the Marketing Department? Multiple Choice $126,500. $147,000. $253,000. $222,000. The Variable Speed Company manufactures a line of high quality tools. The company sold 1,170,000 hammers at a price of $5.7 per unit last year. The company estimates that this volume represents a 25% share of the current hammers market. The market is expected to increase by 5%. Marketing specialists have determined that, as a result of a new advertising campaign and packaging, the company will increase its share of this larger market to 30%. Due to changes in prices, the new price for the hammer will be $6.00 per unit. This new price is expected to be in line with the competition and have no effect on the volume estimates. What are the estimated sales revenues in the coming year? Multiple Choice $8,402,940. $8,424,000. $9,287,560. $8.845,200
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