Question

16. Let q1 represent miles driven and q2 re in the fleet of AAA cost form was in operation for 800 hours during the month, the flexible budget amount for gas is: presents hours of operations. The gas cost for one limo Limo Company depends on both miles driven and the hours of operation. The ula is 0.05q1+3.00 q2. If the actual number of miles driven are 2,500 miles and the limo A) $125 B) $2,400 C) $2,525 D) $3,300

Answer 1

Answer: Option [C] $2,525

Calculation:

Budget amount for gas = 2500*0.05+800*3 = $2,525