Hanover and Trust, a large law firm, utilizes an internal centralized printing c

Question

Hanover and Trust, a large law firm, utilizes an internal centralized printing center to serve its three departments: Individuals, 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? (Round to the nearest cent.)

Explanation / Answer

Fixed cost charging rate = 69190/330000 = 0.21 per pages

Variable cost per page = 0.04 per pages

Total single charging rate = 0.21+.04 = 0.25 per page

so 0.25 per page

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