Question

Pettry Snow Removal's cost formula for its vehicle operating cost is $2,170 per month plus $408 per snow-day. For the month of December, the company planned for activity of 16 snow-days, but the actual level of activity was 13 snow-days. The actual vehicle operating cost for the month was $7,600. The vehicle operating cost in the planning budget for December would be closest to:

Answer 1

The vehicle operating cost in the planning budget for December would be closest to $8698

Step-by-step explanation:

The budgeted vehicle operating costs would be calculated with the help of following formula:

the vehicle operating vost will be added to snow-day that would be ultiplied with the number of planned snow days.

Given data: vehicle operating cost = $2170, snow day cost = $408, number of planned snow days = 16 snow-days.

now, putting the figures in the formula:

$ 2,170 plus $ 408 per day multiply with 16 snow days

after solving we get,

$ 2,170 plus $ 6,528 = $ 8,698.