Figure 7-2 Alpha Company's Travel Department Had the Following Budgeted

Multiple Choice

Figure 7-2 Alpha Company's travel department had the following budgeted costs for the coming year:

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Refer to Figure 7-2.Using both a fixed and variable rate, what are the respective rates for fixed and variable per trip for the West Sales Territory? Fixed costs are allocated on the basis of monthly peak trips.

A) 12.5%; $34
B) 19.6%; $34
C) 18.2%; $34
D) 19%; $34
E) none of these