BPO Services is in the business of digitizing information from forms that are filled out by hand. In 2006, a big client gave BPO a distribution of the forms that it digitized in house last year, and BPO estimated how much it would cost to digitize each form. FORM TYPE Mix of Forms Form Cost 25% $0.25 25% $0.10 25% $0.15 25% $0.50 A B с D a. Compute the average cost of digitizing a form. b. The client agreed to pay the average cost computed in A for each form that BPO processed, but BPO lost money on the contract. How much did BPO lose, on average, for each form that it processed?

Excel Applications for Accounting Principles
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ISBN:9781111581565
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BPO Services is in the business of digitizing information from forms that are filled out by
hand. In 2006, a big client gave BPO a distribution of the forms that it digitized in house last
year, and BPO estimated how much it would cost to digitize each form.
FORM TYPE Mix of Forms Form Cost
25%
$0.25
25%
$0.10
25%
$0.15
25%
$0.50
A
B
с
D
a. Compute the average cost of digitizing a form.
b. The client agreed to pay the average cost computed in A for each form that BPO
processed, but BPO lost money on the contract. How much did BPO lose, on average,
for each form that it processed?
Transcribed Image Text:BPO Services is in the business of digitizing information from forms that are filled out by hand. In 2006, a big client gave BPO a distribution of the forms that it digitized in house last year, and BPO estimated how much it would cost to digitize each form. FORM TYPE Mix of Forms Form Cost 25% $0.25 25% $0.10 25% $0.15 25% $0.50 A B с D a. Compute the average cost of digitizing a form. b. The client agreed to pay the average cost computed in A for each form that BPO processed, but BPO lost money on the contract. How much did BPO lose, on average, for each form that it processed?
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