Refer to Scenario 9

question 61

Multiple Choice

Refer to Scenario 9.8 below to answer the question(s) that follow.
SCENARIO 9.8: Investors put up $1,040,000 to construct a building and purchase all equipment for a new gourmet cupcake bakery. The investors expect to earn a minimum return of 10 per cent on their investment. The bakery is open 52 weeks per year and sells 900 cupcakes per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly) . Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The bakery charges $8 on average per cupcake.
-Refer to Scenario 9.8. Total fixed costs per week are

• A) $1,000.
• B) $2,000.
• C) $3,000.
• D) $4,000.

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Definitions:

Experiment

A method of research in the sciences and social sciences where variables are manipulated to observe the effects on some behavior or mental process.

Longitudinal Design

A research design that involves repeated observations or measurements of the same variables over extended periods of time.

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Aggressive Acts

Behaviors intended to harm or injure another being who is motivated to avoid such treatment.