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:

Duodenal Wall

The lining of the duodenum, which is the first part of the small intestine immediately beyond the stomach.

Secretin

A hormone secreted by the small intestine, which stimulates the secretion of pancreatic juice and bile.

Intrinsic Factor

A protein produced by cells in the stomach lining that is essential for the absorption of vitamin B12 in the small intestine.

Pepsinogen

is the inactive form of pepsin, an enzyme in the stomach that breaks down proteins in food.