Boss Company Currently Leases a Delivery Van from Check Enterprises

Multiple Choice

Boss Company currently leases a delivery van from Check Enterprises for a fee of $250 per month plus $0.40 per mile.Management is evaluating the desirability of switching to a modern,fuel-efficient van,which can be leased from David,Inc.,for a fee of $600 per month plus $0.05 per mile.All operating costs and fuel are included in the rental fees.Which delivery van would it be economically preferable to lease?

A) David,Inc.is economically preferable to a lease from Check Enterprises regardless of the monthly use.
B) Check Enterprises is economically preferable below 1,000 miles per month.
C) Check Enterprises is economically preferable to a lease from David,Inc.,regardless of the monthly use.
D) Check Enterprises is economically preferable above 1,000 miles per month.