Use the Following to Answer Questions

question 93

Multiple Choice

Use the following to answer questions:
-(Table: Variable Costs for Lots) Look at the 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; that is, the variable cost of clearing anywhere from 1 through 10 lots is $200. 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

Explain the concept of digital literacy and its importance in the modern world.

Identify how technology addresses accessibility and inclusivity challenges.

Understand the impact of technology on healthcare management through mHealth applications.

Recognize the role of computer-aided manufacturing (CAM) in improving production efficiency.

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Definitions:

Committed Fixed Costs

Investments in facilities, equipment, and basic organizational structure that can’t be significantly reduced even for short periods of time without making fundamental changes.

Flexible Resources

Assets, such as labor or equipment, that can be adjusted or redirected in response to changing production or operational requirements.

Contribution Margin

The amount by which a product's selling price exceeds its total variable costs, representing the portion of sales revenue that contributes to covering fixed costs.

Variable Administrative Expense

Costs that vary directly with changes in business activity levels, like sales commissions or raw material costs.