Use the Five-Step Strategy for Solving Word Problems to Find $\$ 200$

question 91

Multiple Choice

Use the five-step strategy for solving word problems to find the number or numbers described in the following
exercise.
-Sybil is having her yard landscaped. She obtained an estimate from two landscaping companies. Company A gave an estimate of $\$ 200$ for materials and equipment rental plus $\$ 55$ per hour for labor. Company B gave an estimate of $\$ 275$ for materials and equipment rental plus $\$ 40$ per hour for labor. Determine how many hours of labor will be required for the two companies to cost the same.

• A) 5 hours
• B) 4 hours
• C) 8 hours
• D) 9 hours

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Definitions:

LIFO

Last-In, First-Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.

Average Cost

A calculation that divides the total cost of goods available for sale by the total units available for sale, offering a way to determine the cost of an item's inventory.

First-In, First-Out

An inventory valuation method where the oldest inventory items are recorded as sold first, used in both accounting and inventory management.

Last-In, First-Out

An inventory valuation method where the most recently produced items are the first to be expensed, often used in industries where inventory items are indistinguishable.