Refer to the Information Provided in Table 8 $\text {Number of}$

question 331

Multiple Choice

Refer to the information provided in Table 8.2 below to answer the question(s) that follow.
Table 8.2 $\text {Number of}$

$\begin{array}{llllllll}\text {Earrings}&\text { TVC}&\text { MC }&\text {AVC}&\text { TFC }&\text {TC}&\text { AFC}&\text { ATC}\\\hline0 & & & & &100 & \\1 & & 50 & & & \\2 & & & & & &&95 \\3 & & & 46.67 & & \\4 & & & & &300 & \\5 & 270 & & &\\\hline\end{array}$

-Refer to Table 8.2. If Sherry produces two pairs of earrings, her marginal cost is

• A) $40.
• B) $45.
• C) $72.50.
• D) $122.50.

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Definitions:

Indirect Method

A cash flow statement format that starts with net income and adjusts for transactions affecting operational cash flows, without directly listing them.

Operating Activities

Activities directly related to the core business operations, including cash flows from sales, services, and the costs of doing business, reflected on a company's cash flow statement.

Income Taxes

Taxes levied by the government on the income generated by individuals or entities.

Indirect Method

A way of calculating cash flow from operating activities by starting with net income and adjusting for changes in non-cash balance sheet items.