Pickrel Corporation Is an Oil Well Service Company That Measures

question 307

Multiple Choice

Pickrel Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. When the company prepared its planning budget at the beginning of November, it assumed that 27 wells would have been serviced. However, 31 wells were actually serviced during November.The amount shown for revenue in the planning budget for November would have been closest to:

• A) $170,500
• B) $148,500
• C) $149,981
• D) $172,200

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Definitions:

Independent of Suits

A term often used in card games, meaning the game's outcomes or rules do not depend on the suit of the cards.

Cards

A piece of stiff paper, plastic, or other material, typically rectangular in shape, used for playing games, education, or as tokens.

At Least

A term used in probability and statistics indicating a minimum threshold or the smallest number that is significant in a given context.

Roll a Die

Rolling a die is a random act that produces an outcome between 1 and 6, each with an equal probability.