Refer to the Information Provided in Table 8 $\text {Number of}$

question 106

Multiple Choice

Refer to the information provided in Table 8.2 below to answer the question(s) that follow.
Table 8.2 $\text {Number of}$

$\begin{array}{llllllll}\text {Earrings}&\text { TVC}&\text { MC }&\text {AVC}&\text { TFC }&\text {TC}&\text { AFC}&\text { ATC}\\\hline0 & & & & &100 & \\1 & & 50 & & & \\2 & & & & & &&95 \\3 & & & 46.67 & & \\4 & & & & &300 & \\5 & 270 & & &\\\hline\end{array}$

-Refer to Table 8.2. If Sherry produces one pair of earrings, her total variable costs are

• A) $50.
• B) $100.
• C) $150.
• D) indeterminate from this information.

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and goods, used to fund a company or produce more wealth.

Permanent Investment

Investments a company intends to hold for a long duration, typically exceeding one year, for earning dividends or interest income.

Owner's Equity

The total value remaining in a business after all liabilities are subtracted from assets; also known as shareholders' equity.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the owner's claim against the company's assets.