Pettry Snow Removal's Cost Formula for Its Vehicle Operating Cost

question 280

Multiple Choice

Pettry Snow Removal's cost formula for its vehicle operating cost is $2,170 per month plus $408 per snow-day. For the month of December, the company planned for activity of 16 snow-days, but the actual level of activity was 13 snow-days. The actual vehicle operating cost for the month was $7,600. The vehicle operating cost in the planning budget for December would be closest to:

• A)$7,474
• B)$9,354
• C)$8,698
• D)$7,600

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Definitions:

Resale

The act of selling a product or service again after it has been purchased, often used goods.

Durable Goods

Goods not for immediate consumption and able to withstand use over time, such as appliances, cars, or furniture.

Promotional Mix

The blend of different marketing strategies and tools a company uses to effectively communicate its marketing message to its target audience, including advertising, sales promotion, and public relations.

Personal Selling

A sales technique involving direct interaction between a salesperson and a customer with the goal of persuading the customer to purchase a product or service.