Question

need help please

The Crispy Baking Company is considering the expansion of its business into door-to-door delivery service. This would require an additional $13,700 in labor costs per month. Company-owned vehicles now used to make morning deliveries to restaurants could be used in the afternoons to make the home deliveries. However, it is estimated that an additional $6,200 would be required per month for gas, oil, and maintenance. It is further estimated that the home delivery use of the trucks would be allocated 50% of the existing $7,100 fixed vehicle costs. What is the differential delivery cost per month for expanding into the home delivery market? Jook Multiple Choice $13700 $19,900

Answer 1

of following cost are .) Adelitional 1 1 are given CRISPY BAKINGC Co 8) Additional cost in labowe per month i $ 13700 poma gas, oil, maintenance $ 6200 -) Home deles wes of trucfes allocatel 50% of the enisting $7100 fixed vehicle cost- I shoulalo lee pointed cost which are differential are only the ones that the particularly alloted to the home delivery market Survice and as such they willonly include variable cost not fixed cost .. tifferential costó Labows + gas, oil, maintenance $13700 +$6200 => $ 19,900 The correct answer is $ 19,900 Spoor & FORK 14000 units = 9000 units I following Information quien :- demand for Spoons Demand for forfes = 900 Machine howe available = 54000 hrs Spoon seequieel - 5 machine hoes plu forfes required = 3 machine his plu solutions : forfes cred herei G88-42) = $15-33 Spoons cm Ihr ; ($150–80) - $ 14 We should produce forks finst: 9ooo units x 3 hues . 1 27000 hrs used CS Scanned with CamScanner

Remaining has left = 64000 - 27000 2 7ooo his Available hours left for Spoons: 5400 units 27ooo 5 The Correct answer is option D Spoons Forks 9000 D 6400 : CS Scanned with CamScanner