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Problem 1: What is the total fixed cost of the shipping department of EZ-Mail Clothing Co. if it has the following information for 2002?
Salaries $800,000 75% of employees on guaranteed contracts
Packaging $400,000 depending on size of item(s) shipped
Postage $500,000 depending on weight of item(s) shipped
Rent of warehouse space $250,000 annual lease
a. $850,000
b. $900,000
c. $1,050,000
d. $1,950,000
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