Use the Following to Answer Question

question 332

Multiple Choice

Use the following to answer question:
-(Table: Variable Costs for Lots) Use Table: Variable Costs for Lots.During the winter,Alexa runs a snow-clearing service in a perfectly competitive industry.Assume that costs are constant in each interval;so,for example,the marginal cost of clearing each of the lots from 1 through 10 is $20.Also assume that she can only plow the quantities of the lots given in the table (and not numbers in between) .Her only fixed cost is $1,000 for a snowplow.Her variable costs include fuel,her time,and hot coffee.If the price to clear a lot is $60,how many lots should Alexa clear?

• A)50
• B)40
• C)30
• D)20

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Definitions:

Proceeds

The total amount of money received from a transaction, such as the sale of an asset, before any deductions.

Replenish Petty Cash

The process of adding funds to a petty cash fund, typically done when the balance drops to a predefined level, to ensure availability of cash for small, immediate expenses.

Minor Expenditures

Small or insignificant costs that are usually of a non-recurring nature and may not be capitalized.

Discounted Note

A debt instrument sold for less than its face value that will pay the face value at maturity, effectively providing interest to the holder.