The State of Illinois Has Passed a Law Requiring That

question 73

Multiple Choice

The state of Illinois has passed a law requiring that every automobile be inspected at least once a year for pollution control.Anfang Enterprises is considering entering into this type of business.After extensive studies,Joseph Anfang has developed the following set of projected annual data on which to make his decision: $\begin{array}{lr}\text { Direct service labor } & \$ 363,000.00 \\\text { Variable service overhead costs } & 270,000.00 \\\text { Fixed service overhead costs } & 280,000.00 \\\text { Marketing expenses } & 120,000.00 \\\text { General and administrative expenses } & 170,000.00 \\\text { Minimum profit } & 90,000.00 \\\text { Cost of assets employed } & 500,000.00\end{array}$ Anfang believes that his company will inspect 100,000 automobiles per year.The company earns an average of 18.75 percent return on its assets.
The projected cost for inspecting each automobile would be

• A) $11.13.
• B) $12.03.
• C) $12.93.
• D) $10.03.

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Definitions:

Insulin

Insulin is a hormone produced by the pancreas that regulates blood glucose levels by promoting the absorption of glucose into liver, fat, and skeletal muscle cells.

Glucose

A simple sugar that is an important energy source in living organisms and is a component of many carbohydrates.

Nutrients

Substances obtained from food that are essential for maintaining bodily functions and growth, including vitamins, minerals, carbohydrates, proteins, and fats.

Testosterone

A steroid hormone that plays a key role in the development of male reproductive tissues, as well as promoting secondary sexual characteristics and affecting moods.