Runaround Corporation Sells Running Shoes and During January They Ran

question 221

Multiple Choice

Runaround Corporation sells running shoes and during January they ran production machines for 20,000 hours total and incurred $9,000 in maintenance costs. During July they ran production machines for 14,000 hours total and incurred $7,200 in maintenance costs. Based on this data, what is the cost formula for maintenance costs?

• A)y = $0.30 X + $3,000
• B)y = $3.33 X + $57,600
• C)y = $0.45 X + $4,500
• D)Cannot determine from the information given.

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Definitions:

Product Alpha

A term often used to define the first version or iteration of a product, typically before it is released to the general public for feedback.

Marginal Utility

The additional satisfaction or utility that a person receives from consuming one more unit of a good or service.

Utility-Maximizing Rule

An economic principle stating that consumers allocate their income to purchase the combination of goods and services that maximizes their utility.

Consumption Mix

The combination of goods and services consumed by an individual or in an economy, reflecting preferences, income levels, and other factors.