| A data centre is about to establish a 
            database service,to help other departments with accounting and financial 
            data processing:the resource costs of the data centre are currently $80,000 
            a year
 it will cost an additional $20,000 a year,in resource costs,to 
            provide the database
 service
 the non-resource costs (overheads)for the data centre are currently 
            $25,000 a year
 the database service can be provided without adding to the non-resource 
            costs
 (overheads)of the data centre
 it is expected that the database service will be used for 2,500 
            hours in each working year
 the same service could easily be provided for 5,000 hours in 
            each year,without
 adding to the resource or non-resource costs.
 The data centre wishes to charge other departments for using the services 
            of the database consultancy service.
 (a)Calculate a suitable unit rate for the database service,based on 
            expected use,taking non-resource costs (overheads)into account.Explain 
            all of your working.[9 marks ]
 (b)Suggest two reasons why it might be felt appropriate to set a lower 
            unit rate for the use of the database service.[2 marks ]
 (c)State how a lower unit rate might be determined,and calculate a 
            suitable value.
 Explain all of your working.[4 marks ]
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