A Firm Has Contracted to Supply 500,000 Gallons of Propane

question 62

Multiple Choice

A firm has contracted to supply 500,000 gallons of propane fuel for $1.46 million to the local municipality. The municipality wants to break the contract. What does the minimum current market price of propane need to be in order for the firm to benefit from breaking the contract?

• A) greater than $2.90 per gallon
• B) greater than $2.92 per gallon
• C) greater than $2.94 per gallon
• D) greater than $2.96 per gallon