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Leviafan [203]
3 years ago
3

Hanover and Trust, a large law firm, utilizes an internal centralized printing center to serve its three departments: Individual

s, Corporate, Trust. The costs of the printing department include fixed costs of $69,190 and variable costs of $0.04 per page. Total estimated print pages are estimated to be 330,000 pages. Individuals are estimated to use 130,000; Corporate will use 165,000 and 35,000 from the trust area. Assuming a single charging rate is used, what would be the charge per page?
Business
1 answer:
Artyom0805 [142]3 years ago
6 0

Answer: $0.25 per page

Explanation:

Fixed costs = $69,190

Variable costs = $0.04 per page.

We calculate the fixed cost charging rate per page which will be:

= $69190 / 330000

= $0.21 per pages

Then, the total single charging rate will be the addition of the fixed cost per page and the variable cost per page:

= $0.21 + $0.04

= 0.25 per page

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