Refer to the Information Provided in Scenario 21

question 57

Multiple Choice

Refer to the information provided in Scenario 21.5 below to answer the questions that follow.
SCENARIO 21.5: The tiny nation of Bugaboo consists of two virtually identical islands, Achoo and Zoink, separated by the Strait of Dingo. The islands are similar in geography and population. The only telephone service on the islands is cellular, and the only cellular provider on the islands is the government-owned Bugaboo Communications Company, which charges a standardized rate of 20 Bugabucks per minute. Both islands add on an additional $5 Bugabucks-per-minute usage tax. As a way to increase revenue, the island governor of Zoink decided to increase the usage tax to $10 per minute, effective January 1, 2017. The average monthly cellphone usage per month is listed in the table below.
Average Monthly Telephone
Use per Resident (minutes)

-Refer to Scenario 21.5. The total cost of telephone service for residents of Zoink in 2017 is ________ Bugabucks.

• A) 26,125
• B) 52,250
• C) 156,750
• D) 182,875

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