Shannon Vale Is Considering the Start-Up of a Service Company

question 86

Multiple Choice

Shannon Vale is considering the start-up of a service company. She has compiled information on costs as follows: With the cost data provided, determine the fixed costs and variable cost per km.

• A) Fixed costs: $4425; Variable costs: $1.031
• B) Fixed costs: $5,186; Variable costs: $0.818
• C) Fixed costs: $6,200; Variable costs: $0.966
• D) Fixed costs: $5,726; Variable costs: $0.952
• E) Fixed costs: $7,752; Variable costs: $1.048

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