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Discuss the variable cost of operating the snowplow

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Sunglow estimates that each blocked road results in lost revenue of $4,500 per day, unless all three roads are blocked. When all three roads are blocked, estimated lost revenue is $35,000 for that day. Sunglow estimates that weather will be similar in Year 2. It can retain a snowplow service for $50,000 annually to clear blocked roads. The variable cost of operating the snowplow is $500 per day per blocked road. If Sunglow uses a snowplow service in Year 2, the estimated benefit would be

Reference no: EM131751278

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