The Rapid Delivery Service Is Considering the Expansion of Its

question 35

Multiple Choice

The Rapid 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.

---

Definitions:

Lease

A contractual agreement where one party (the lessor) grants another party (the lessee) the right to use an asset for a specified period in exchange for payment.

Electronic Commerce

The buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.

Ucc Articles

UCC Articles refer to the sections of the Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States.

Unconscionability

A legal doctrine that describes terms that are so extremely unjust, or overwhelmingly one-sided in favor of the party who has the superior bargaining power, that they are contrary to good conscience.