The Speedy Delivery Service Is Considering the Expansion of Its

question 16

Multiple Choice

The Speedy Delivery Service is considering the expansion of its business into afternoon retail delivery service.This would require an additional $25,000 in labor costs per month.Company-owned vehicles now used to make morning deliveries to local manufacturers could be used in the afternoons to make retail deliveries.However,it is estimated that an additional $10,000 would be required per month for gas,oil,and maintenance.It is further estimated that the retail delivery use of the trucks would be allocated 45% of the existing $13,000 fixed vehicle costs.What is the differential delivery cost per month for expanding into the retail delivery market?

• A)$25,000.
• B)$35,000.
• C)$39,500.
• D)$40,850.

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Definitions:

Marketing Activities

Encompasses various actions and strategies companies employ to promote and sell their products or services, including advertising, sales promotions, and public relations.

B2B

Business-to-Business, a model involving the exchange of products, services, or information between businesses, rather than between businesses and consumers.

B2C

Business-to-Consumer, a model where businesses sell products or services directly to individual consumers.

C2C

Consumer-to-Consumer (C2C) refers to transactions conducted between two consumers, typically facilitated by a third-party platform such as online marketplaces.