Reference no: EM132360290

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

A                              25%      $0.25

B                              25%      $0.10

C                              25%      $0.15

D                              25%      $0.50

If the client pays the cost for Form A for all forms processed, what is the average gain or loss earned across all forms processed?

A. Lose $0.10 per form

B. Break even

C. Gain $0.10 per form

D. Gain $0.15 per form