Use the Information Below to Answer the Following Question(s)

question 83

Multiple Choice

Use the information below to answer the following question(s) .A transportation company provides bussing, limo and taxi service.The company charges: $350 per day for bussing service; $2.00 per kilometre for taxi service; and, $3.50 per kilometre for limo service.Two individual clients, the school board and the city government offices use the majority of the limo service on a contract agreement.Bussing services are used exclusively by the school board, and the taxi service is used almost exclusively by the general public, although the school board uses the taxi services when individual students have to be transported on occasion.Indirect costs are accumulated on internal records at $1.50 per kilometre for limo use and $1.00 per kilometre for taxi use, and $195 per day for each of the twenty buses.The company's costing system has tracked the following activities for the month:

-Compute the billing to each major client for the month.

• A)School Board, $134,440.00; City Gov't, $7,050.50
• B)School Board, $8,090.00; City Gov't, $134,440.00
• C)School Board, $134,440.00; City Gov't, $4,323.50
• D)School Board, $7,050.50; City Gov't, $7,685.00
• E)School Board, $8,090.00; City Gov't, $7,050.50

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Definitions:

Stipulation

An agreement or condition specified in a legal document or contract, often binding the parties to its terms.

Counteroffer

A response to an offer in which the original terms are rejected and new terms are proposed.

Inquiry

The act of asking for information or conducting an investigation in order to gain understanding.

Grumbling Acceptance

Reluctant agreement or consent to a situation, decision, or condition without overt opposition.