Boss Company Currently Leases a Delivery Van from Check Enterprises

question 58

Multiple Choice

Boss Company currently leases a delivery van from Check Enterprises for a fee of $250 per month plus $0.40 per mile.Management is evaluating the desirability of switching to a modern,fuel-efficient van,which can be leased from David,Inc.,for a fee of $600 per month plus $0.05 per mile.All operating costs and fuel are included in the rental fees.Which delivery van would it be economically preferable to lease?

• A)David,Inc.is economically preferable to a lease from Check Enterprises regardless of the monthly use.
• B)Check Enterprises is economically preferable below 1,000 miles per month.
• C)Check Enterprises is economically preferable to a lease from David,Inc.,regardless of the monthly use.
• D)Check Enterprises is economically preferable above 1,000 miles per month.

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Definitions:

Respect

A feeling of deep admiration for someone or something elicited by their abilities, qualities, or achievements.

Hang Up

The act of ending a telephone call, often abruptly.

Sell Them

A directive to persuade individuals to purchase a product or service.

Obtaining Referrals

The process of acquiring new business leads or customers through recommendations from existing customers or contacts.