Refer to Scenario 9

question 226

Multiple Choice

Refer to Scenario 9.9 below to answer the question(s) that follow.
SCENARIO 9.9: Sponsors invest $250,000 in a new greeting card business on the promise that they will earn a return of 10% per year on their investment. The business sells 52,000 greeting cards per year. The fixed costs for the business include the return to investors and $79,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($3,000 per week) . The business is open 52 weeks per year.
-Refer to Scenario 9.9. The annual fixed costs for the business sum to

• A) $25,000.
• B) $79,000.
• C) $104,000.
• D) $208,000.

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Definitions:

Prohibition

A period in history, particularly in the United States (1920-1933), when the production, importation, transportation, and sale of alcohol were banned.

Civil War

An internal conflict within a country between differing factions, states, or governments, often characterized by intense military engagements and significant casualties.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and resulting in significant geopolitical changes.

Heavy Drinking

The consumption of alcohol in amounts that are harmful to health.