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zlopas [31]
3 years ago
11

Jose rents office space for $20,000 per year. He uses the office to fill out tax returns for 1<000 clients per year. If the o

ffice rent increases to $25,000 per year, the marginal cost of filling out tax returns will:
A. Not change

B. Increase by $5000

C. Increase, but we cannot determine the amount of the increase with the information given.

D. Increase by $5
Business
1 answer:
pav-90 [236]3 years ago
7 0

Answer:

(A) No change

Explanation:

Since the TC for filling 1000 returns increases from $2000 to $25000, this will remain fixed for any increase in the number of returns filed.

Even if the returns filed increases from 1000 to 2000 or 3000, the TC will remain the same.

Thus, there will be no change in MC.

Thus, correct option is (A) No change

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I believe the correct answer is Theory X.
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barxatty [35]

Answer:

Cash Flow From Operating Activities

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Cash Paid to Suppliers and Employees       ($6,294,700)

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Explanation:

Step 1 : Cash Paid to Suppliers and Employees Calculation

Cost of goods sold                                         $4,987,300

Add Operating expenses                                $1,120,500

Total                                                                 $6,107,800

Adjustments :

Depreciation expense                                        $95,300

Decrease in Inventory                                     ($536,700)

Increase in Prepaid Expenses                          $179,800

Decrease in Accounts Payable                        $345,700

Decrease in Accrued Expense Payable          $105,800

Cash Paid to Suppliers and Employees       $6,294,700

Step 2 : Cash Receipt from Customers Calculation

Sales revenue                                                $7,465,900

Less Increase in Accounts receivable          ($205,900)

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