A Mutual Fund Had Year-End Assets of $700,000,000 and Liabilities

question 9

Multiple Choice

A mutual fund had year-end assets of $700,000,000 and liabilities of $7,000,000. There were 40,150,000 shares in the fund at year end. What was the mutual fund's net asset value?

• A) $9.63
• B) $57.71
• C) $16.42
• D) $17.87
• E) $17.26

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Definitions:

Variable Costing

An accounting method that includes only variable production costs in the cost of goods sold and treats fixed overhead expenses as period costs.

Operating Income

Earnings from a company’s core business operations, excluding deductions of interest and taxes.

Absorption Costing

An accounting method that includes all direct costs and overheads involved in manufacturing a product in the cost of that product.

Contribution Margin

The amount of revenue remaining after subtracting the variable costs associated with producing goods, contributing to covering fixed costs and profit.