Refer to Scenario 9

question 333

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 total costs for the business sum to

• A) $79,000.
• B) $104,000.
• C) $208,000.
• D) $312,000.

---

Definitions:

Legal Rights

Refers to the entitlements granted by legal systems or societal norms to individuals or entities, encompassing freedoms, privileges, and protections under law.

Clearing

The process of reconciling purchases and sales of various options, futures, or securities, as well as the direct transfer of funds from one financial institution to another.

Refuse To Honor

The act of not accepting, acknowledging, or fulfilling an agreement, request, or instruction.

Enough Money

Implies having sufficient funds to meet needs, obligations, or desired goals without financial strain.