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The Owner of Firewood to Go Is Considering Buying a Hydraulic

Question 202

Multiple Choice

The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. What would the potential profit be if he were to split 4,000 cords of wood with this machine?


A) $0
B) $200,000
C) $100,000
D) $75,000
E) $50,000

Correct Answer:

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