Suppose a Firm Has an Annual Budget of $200,000 in Wages

question 46

Multiple Choice

Suppose a firm has an annual budget of $200,000 in wages and salaries,$75,000 in materials,$30,000 in new equipment,$20,000 in rented property,and $35,000 in interest costs on capital.The owner/manager does not choose to pay himself,but he could receive income of $90,000 by working elsewhere.The firm earns revenues of $360,000 per year. To receive a normal profit,the firm described above would have to

• A)Experience $10,000 less in cost.
• B)Receive $90,000 more in revenue.
• C)Receive $10,000 more in revenue.

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Definitions:

Protestant Paramilitary

Armed groups formed along Protestant ideological lines, typically in contexts of religious or sectarian conflict, emphasizing militaristic discipline and organization.

Helsinki Accords

An important diplomatic agreement signed in 1975 by 35 nations, including the USA and the USSR, aimed at improving relations between the Communist bloc and the West, and securing human rights as part of the détente policy.

Human Rights

Fundamental rights and freedoms believed to be entitled to all individuals, regardless of nationality, place of residence, sex, national or ethnic origin, color, religion, language, or any other status.

Falkland Islands

A British Overseas Territory located in the South Atlantic Ocean, known for its strategic military importance and the subject of a territorial dispute with Argentina.