Question
The Food Delivery Company is considering expanding its business. This expansion involves delivering baked goods on a door-to door basis. This would require $12,500 additional
The Food Delivery Company is considering expanding its business. This expansion involves delivering baked goods on a door-to door basis. This would require $12,500 additional labor cost per month. Company-owned vehicles now used to make morning deliveries to food stores could be used in the afternoons to make home deliveries. However, it is estimated that an additional $5,000 would be required per month for vehicle expense. It is further estimated that the home delivery use of the trucks would be allocated 45% of the existing $6,500 vehicle fixed cost. What is the differential delivery cost per month for the home deliveries? Select one: a. $ 20,425 b. $ 17,500 c. $ 24,000 d. $ 12,500
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