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A motor vehicle has annual depreciation of $1,600; oil changes cost $140,automobile insurance $700 annually,and license plates costs $100.What is the annual amount of the total fixed operating cost for this vehicle?


A) $1,600
B) $1,740
C) $2,300
D) $2,400
E) $2,540

F) A) and B)
G) A) and C)

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A credit purchase with 24 monthly payments of $87 and a down payment of $120 would have a total cost of:


A) $1,200.
B) $1,287.
C) $2,088.
D) $2,208.
E) $2,880.

F) A) and E)
G) A) and B)

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A cooperative is designed to:


A) solve consumer complaints.
B) test consumer products for quality.
C) sell products or services to members at reduced prices.
D) obtain brand-name items for less than wholesale cost.
E) lobby for changes in consumer protection laws.

F) A) and C)
G) A) and B)

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Service contracts are usually free and included in the cost of appliances and other high-priced items.

A) True
B) False

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Lorenzo Cunningham has settled on purchasing a new Honda Accord and has found that the suggested retail price is $23,600 and that the dealer's invoice price is $21,500.It is time for him to go to a dealer and negotiate the price he will pay for his new car.What step in the purchasing process is Lorenzo carrying out?


A) Problem identification
B) Information gathering
C) Evaluating alternatives
D) Determining the purchase price
E) Post-purchase activities

F) B) and C)
G) B) and D)

Correct Answer

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