Refer to Scenario 9

question 97

Multiple Choice

Refer to Scenario 9.2 below to answer the question(s) that follow.
SCENARIO 9.2: Tom borrowed $40,000 from his parents to open a donut stand. He agrees to pay his parents a 5% yearly return on the money they lent him. His other yearly fixed costs equal $10,000. His variable costs equal $25,000. He sold 40,000 dozen donuts during the year at a price of $2.00 per dozen.
-Refer to Scenario 9.2. Tom's total costs equal

• A) $37,000.
• B) $40,000.
• C) $50,000.
• D) $59,000.

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Definitions:

Series Components

Electrical components connected in a circuit in such a manner that there is only one path for current flow, causing the current through each component to be the same.

Parallel Components

Elements in an electrical circuit are said to be in parallel if they are connected across the same two points in the circuit, allowing electric current to split and flow through multiple paths.

Current Flow

The flow of electric charge carriers like electrons, through a conductor or electrical circuit.

Applied Voltage

The voltage that is supplied or exerted across a component or circuit.