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A Landscaping Company Is Considering Renting a Backhoe at $12,000

Question 2

Multiple Choice

A landscaping company is considering renting a backhoe at $12,000 for the season. The variable cost of completing a landscaping project with the use of the backhoe is $500. Alternatively, without the use of the backhoe, the company would incur a variable cost of $1,000 per landscaping project and no fixed costs. If the landscaping company plans to complete more than _____ projects, the total cost of landscaping projects will be lower _____.


A) 24; with the backhoe
B) 18; with the backhoe
C) 44; without the backhoe
D) 12; without the backhoe

Correct Answer:

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