Answer:
C) Lease payments for office space
Explanation:
The fixed cost is the cost that remains fixed whether the production level changes or not
So as per the given choices, the option c would be selected i.e. lease payment made for office space as it would be independent with respect to the quantity generated also it would be paid even there is no production take place
Therefore the option c is correct
Answer:
The statement is true
Explanation:
Market-clearing price is the price of a product or a service in which the quantity sold is equal to the quantity demanded and There are no surpluses or shortfalls on the market, it's also known as the price of equilibrium. The theory suggests that consumers tend to shift to that price
Answer:
The amount of net income is $45,000
Explanation:
The computation of the net income is shown below:
= Total assets - Liabilities - stockholder equity
= $200,000 - $75,000 - $80,000
= $45,0000
By using the accounting equation, the total assets equal to the total liabilities and stockholder equity
In mathematically,
Total assets = Total liabilities + stockholder equity
But in the given question, the amounts are not equal to each other, so the difference should be termed as net income
Answer:
Collected on domestic economic activity
Explanation:
apex
Answer:
b. $0.40 per unit and $8,000
Explanation:
High low method separates the fixed cost and variable cost using net of Highest activity level and Lowest activity level and net of their relevant costs.
According to High low method
Variable cost per unit = ( Highest activity cost - Lowest activity cost ) / ( Highest Activity - Lowest activity )
Variable cost per unit = ( $120,000 - $74,000 ) / ( 280,000 - 165,000 )
Variable cost per unit = $46,000 / 115,000
Variable cost per unit = $0.4
Fixed operating cost = Total cost - Total Variable cost = $120,000 - ( 280,000 x $0.4 ) = $8,000
