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Bizhelp, CPA
Category: Homework
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Experience:  Bachelors Degree and CPA with Accounting work experience
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1) the regal baking company is considering the expansion of

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1) the regal baking company is considering the expansion of its business into door-to-door delivery service. this would require an additional $12,500 in labor costs per month. company owned vehicles now used to make morning deliveries could be used in the afternoons to make at home deliveries. however, it is estimated that an additional $5,000 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 45% of the existing $6,500 fixed vehicle costs. what is the differential delivery cost per month for expanding into the home delivery market?
a. $12,500
b. 17,500
c. 19,750
d. 20,425
e. some other answer ___

2) which of the following best distinguishes an opportunity cost from an outlay cost?
a. opportunity costs are recored, whereas outlay costs are not
b. outlay costs are speculative in nature, wheras opportunity costs are easily traceable to products
c. opportunity costs have very little utility in practical applications, whereas outlay costs are always relevant
d. opportunity cost are sacrifices from foregone alternative uses of resources, whereas outlay costs are cash outflows.
Submitted: 6 years ago.
Category: Homework
Expert:  Bizhelp replied 6 years ago.

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