Firm X has a new promotional program that offers a free
gift-wrapping service for its customers. Its customer-service
department has practical capacity to wrap 5,000 gifts at a budgeted
fixed cost of $4,950 each month. The budgeted variable cost to
gift-wrap an item is $0.35. During September 2020, the department
budgeted to wrap 4,500 gifts. Although the service is free to
customers, a gift-wrapping service cost allocation is made to the
department where the item was purchased. The customer-service
department...