TheCanarieCompany's copy department, which does almost all of the photocopying for the sales department and the administrative department, budgets the following costs for the year, based on the expected activity of6,200,000copies:

Salaries (fixed)$124,000

Employee benefits (fixed)15,500

Depreciation of copy machines (fixed)12,400

Utilities (fixed)6,200

Paper (variable, one cent per copy)62,000

Toner (variable, one cent per copy)62,000