The Flintstone Construction Company Delivers Dirt and Stone from Local

question 80

Multiple Choice

The Flintstone Construction Company delivers dirt and stone from local quarries to its construction sites.A new truck that was purchased for a cost of $120,000 at the beginning of the year was expected to deliver 200,000 tons over its useful life.The following is a breakdown of the tons delivered during the year to each construction site: $$\begin{array} { l c c c c } \text { Construction Sites: } & \text { A } & \text { B } & \text { C } & \text { D } \\\text { Tons Delivered: } & 2,000 & 3,500 & 4,000 & 1,500\end{array}$$
How much truck depreciation should be allocated to Site A? (Do not round intermediate calculations.)

• A) $21,818
• B) $30,000
• C) $2,000
• D) None of the answers are correct.

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Definitions:

Elasticity

A concept that measures the responsiveness of one variable in relation to changes in another variable, often used in economics to describe how changes in price affect supply or demand.

Linear Demand Curve

A graphical representation of the relationship between the quantity of a good that consumers are willing to buy and its price when the relationship is directly proportional.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in price, income, or other related factors.

Price Ranges

The spread between the lowest and highest price at which a good or service is sold in a market.