Answer: c. A nonagency relationship with everyone in the office.
Explanation:
For an agency relationship to exist in the eyes of the law, there must be a contract with a written designated agency relationship between the client and Meramac Realty. 
With no such contract in existence, the law recognizes no agency relationship between Meramac and any of its affiliates with the client. There is therefore a non-agency relationship with everyone in Meramac. 
 
        
             
        
        
        
In this situation, the Average fixed cost wll be INCREASED.
AFC (average fixed cost) is calculated by adding up all total fixed cost within a certain period and divide it with the total years. If a business experienced an increased in any way to its fixed cost, the average will automatically increased.
        
             
        
        
        
Answer:
D. Merchandise Inventory xxx
Accounts Receivable xxx
Explanation:
The Journal Entry is shown below:-
Merchandise Inventory A/c Dr,         xxx
               To Accounts Payable     xxx
(Being purchase of inventory on account is recorded)
Therefore inventory is purchased so it will increasing assets, it is debited while accounts payable is increasing liabilities so it is credited.