In 2011, the Fixed Costs of a Company Were $500,000

question 40

Multiple Choice

In 2011, the fixed costs of a company were $500,000, and its variable costs equaled $150,000. In 2010, the company made an annual profit of $200,000. It has been predicted that, despite a steady growth, the company's variable costs will likely equal $300,000 by 2013. The total costs of the company in 2011 were ________.

• A) $350,000
• B) $450,000
• C) $650,000
• D) $800,000
• E) $950,000

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Definitions:

Teamwork

The collaborative effort of a group of people working together to achieve a common goal or complete a task in the most effective and efficient way.

Individual Contributors

Employees who are responsible for completing tasks and projects on their own, contributing to the organization's goals through their individual efforts.

Human Assets

The skills, knowledge, and competencies of the individuals within an organization, considered as valuable resources.

Leadership

The act of guiding or influencing a group towards achieving a common goal through direction, inspiration, and encouragement.