Question: 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
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? $20,000 $24,100 $35,000 $12,000
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