Maddie Noticed That Many Students on Campus Had T-Shirts and Sweatshirts

question 42

Multiple Choice

Maddie noticed that many students on campus had t-shirts and sweatshirts with Greek organization letters or club names on them. Recognizing that there was a huge market for this attire, Maddie rented a store front and a silk screening machine to get into the t-shirt business. Maddie's rent is $1,000 a month, including utilities. The silk screen machine leases for $300 a month. Maddie can buy blank t-shirts for $6 each and sweatshirts for $10 each. Maddie calculated the cost of materials for the silk screening at $2 per unit. For pricing decisions, Maddie should consider the $2 cost of silk screening material as a:

• A) variable cost.
• B) fixed cost.
• C) deductible expense.
• D) marginal expense.

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Definitions:

Tuning Fork

A tool made of two prongs that, when struck, produces a fixed pitch used in music and medical fields to test hearing or vibrations.

Rinne

A clinical test used to evaluate loss of hearing by comparing air conduction to bone conduction of sound.

Tracking Mechanism

A system or process used to monitor and follow the movement or progress of an object, individual, or trend.

Nystagmus

A condition characterized by involuntary, rapid, and repetitive movements of the eyes.