Which of the Following Does Not Represent an Option to Expand

question 17

Multiple Choice

Which of the following does not represent an option to expand a project?

• A)A firm leases more office space than it forecasts it will need.
• B)A company engages in test marketing for a new product.
• C)Your university builds an administrators' parking garage having more parking spaces than administrators.
• D)A dry cleaner purchases equipment that can be readily sold to other dry cleaners.

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Definitions:

Sales Price

The sum of money that a purchaser spends to acquire a product or service from a vendor.

Contribution Margin

The revenue remaining after deducting variable costs, which can be used to cover fixed costs and contribute to profit.

Variable Costs

Costs that change in proportion to the level of production or business activity.

Fixed Costs

Expenses that do not change with the level of production or sales activities within a reasonable scale.