George Rentals offers machine rental services for concrete cutting. Consider the following costs of the company over the relevant range of 4,000 to 10,000 hours of operating time for its concrete cutting equipment.

-What are the estimated total costs at a volume of 5,000 hours?

Question

George Rentals offers machine rental services for concrete cutting. Consider the following costs of the company over the relevant range of 4,000 to 10,000 hours of operating time for its concrete cutting equipment.
 
-What are the estimated total costs at a volume of 5,000 hours?

Quizplus · Accepted Answer

$20,000 / 4,000 = $5.00/hr.
($5 x 5,000) + $82,000 = $107,000

George Rentals Offers Machine Rental Services for Concrete Cutting