Question

The Payroll Department provides services for several plants in the city of Yee Haw Junction. The Payroll Department's budget is $100,000, and it issues 4,000 checks every other week. The lighting plant has 1,000 employees. How much should the lighting plant be charged by the Payroll Department for its services?

Answer 1

Answer:

The answer is $25,000.

Step-by-step explanation:

As given, the Payroll Department's budget is $100,000, and it issues 4,000 checks every other week. The lighting plant has 1,000 employees.

Hence, the lighting plant charge rate will be = total Payroll Department's budget divided by total service department usage

$\frac{100000}{4000}$ = 25

Now as there are total 1000 employees, the total charge becomes :

$25\times1000$ = $25,000