Use This Information and Output to Answer the Following Questions

question 25

Multiple Choice

Use this information and output to answer the following questions.
Rentals-R-Us specializes in 4WD car rentals.The number of rentals per month typically ranges between 10 and 50.You may assume equal probability for the number of rentals to assume any value in that range.The monthly operating costs for Rentals-R-Us can range anywhere from $2,000 to $4,000,with $3,000 being the most probable cost.Each rented vehicle generates $55 in revenues.You decide to build a simulation model in Crystal Ball to simulate monthly profits.
$$\begin{array} { | l | l | c | } \hline & { \text { A } } & \text { B } \\\hline 1 & \text { Rentals-R-Us } & \\\hline 2 & \text { Number of car rentals } & 50 \\\hline 3 & \text { Rental per car } & \$ 55 \\\hline 4 & \text { Monthly operating costs } & \$ 2,000 \\\hline 5 & \text { Profit or loss } & \$ 750 \\\hline\end{array}$$
-Refer to the table.Which cell(s) would be designated as the "Forecast cell"?

• A)A5
• B)B2
• C)B3
• D)B4
• E)B5

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Definitions:

Units Of Production

A method of allocating the cost of a tangible asset over its useful life based on the amount of production or use of the asset.

Scrap Value

The estimated resale value of an asset after it has reached the end of its useful life.

Units-Of-Production Method

A depreciation method that allocates expenses based on the actual usage or production levels of an asset over its useful life.

Scrap Value

An asset's anticipated resale value once it has surpassed its period of utility.