Kaaihue Detailing's Cost Formula for Its Materials and Supplies Is

question 284

Multiple Choice

Kaaihue Detailing's cost formula for its materials and supplies is $2,750 per month plus $17 per vehicle. For the month of April, the company planned for activity of 95 vehicles, but the actual level of activity was 135 vehicles. The actual materials and supplies for the month was $4,850.
-The materials and supplies in the planning budget for April would be closest to:

• A) $4,850
• B) $5,045
• C) $3,413
• D) $4,365

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Definitions:

Equilibrium Price

The cost at which the amount of a product or service that consumers want to buy matches the amount that producers are willing to sell, thereby achieving equilibrium in the market.

Law of Demand

The principle stating that, all else being equal, as the price of a good increases, its demand falls and vice versa.

Market for Pizza

An example of a niche market, focused specifically on the buying and selling of pizza, influenced by consumer preferences and economic factors.

Summer to Fall

The transitional period from the warm summer months to the cooler autumn season, often marked by changes in weather, fashion, and consumer behavior.