Jamara Has Started a Home Party Business That Hosts Parties

question 116

Multiple Choice

Jamara has started a home party business that hosts parties and those attending paint signs. Jamara must pay $500 a year to be a representative for Paint A Sign. In addition, Jamara buys all the materials for the parties, including the metal base, the paints, brushes, stencils, and transfers. Currently, these items all add up to $10 on average. Jamara charges each participant $25 for each sign they make. For Jamara's Paint A Sign business, the $500 is a fixed cost per year. Which of the following is true?

• A) Jamara will pay the Paint A Sign company $500 regardless of the number of parties she hosts.
• B) Jamara will have to pay Paint A Sign $500 for every party she hosts.
• C) Jamara will lose money if she has less than 100 participants a year.
• D) Jamara's annual fixed costs will be higher than her variable costs regardless of the number of participants.

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Definitions:

Deviant Behavior

Acts that diverge from accepted social standards and norms.

American Dream

The belief that everyone in the United States has the chance to be successful and happy if they work hard.

Violent Crime

Criminal activities that involve the use of force or threat of force against others.

Property Crime

Crimes involving the theft of property without direct harm to the victim, such as burglary, larceny, theft, motor vehicle theft, and arson.