A Cement Contractor Has Determined That He Will Maximize Pretax

question 44

Multiple Choice

A cement contractor has determined that he will maximize pretax operating cash flow buying a large cement truck if he is able to sell more than 550 yards of cement per month. The price of a yard of cement is $62, and the variable costs for a large truck are $22 per yard. The variable costs for a small truck are $44 per yard, and the fixed costs for the small truck are $12,000. What are the fixed costs associated with the large truck?

• A) $20,000
• B) $12,000
• C) $24,100
• D) $35,000

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Definitions:

Organization Complexity

The degree to which an organization displays varied and numerous elements, structures, and processes, reflecting its multifaceted nature.

Project Complexity

The degree of diverse, interconnected elements and factors within a project, which can impact its execution and outcome.

Communication Process

A series of steps through which information is exchanged between senders and receivers, encompassing message creation, transmission, reception, and interpretation.

Client Team Approach

A collaborative strategy where the client's representatives actively participate in the team managing a project, ensuring the project meets the client's needs and objectives.