FYI Sanitation Is Currently Eight Months into a Year-Long Lease

question 196

Multiple Choice

FYI Sanitation is currently eight months into a year-long lease contract on a garbage truck at a cost that averages $500 per month. Other variable costs (fuel, workers, etc.) for operating the truck amount to $300 per month. If the monthly revenue from operating the truck is $400, and these conditions are expected to continue into the future, to maximize its profit, FYI Sanitation should

• A) stop operating the truck immediately and not renew the lease for next year.
• B) continue operating the truck indefinitely.
• C) continue operating the truck until the lease expires, then not renew the lease for next year.
• D) stop operating the truck now but renew the lease and begin operating the truck again next year.

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Definitions:

Pupil

The black circular opening in the center of the iris of the eye, which changes size to regulate the amount of light reaching the retina.

Lens

A piece of transparent material, such as glass or plastic, that bends light rays to form an image on a camera sensor or the retina of the eye.

Aqueous Humor

A clear fluid that fills the space in the front part of the eye, helping to maintain pressure and refract light.

Anterior Chamber

The anterior chamber is the fluid-filled space inside the eye between the cornea and the iris.