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:

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without any prior learning.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without needing to be learned.

Conditioned Response

A learned reaction or response to a previously neutral stimulus that has been repeatedly presented alongside an unconditioned stimulus.

Grapefruit

A subtropical citrus fruit known for its sour to semi-sweet flavor, also interacting with many medications.