Reference: 06-10
the Following Data Have Been Provided by a Retail

question 50

Multiple Choice

Reference: 06-10
The following data have been provided by a retail company that sells a single product. $$\begin{array} { | l | l | l | } \hline & \text { This Year } & \text { Last Year } \\\hline \text { Units sold } & 200,000 & 150,000 \\\hline \text { Sales revenue } & \$ 1,000,000 & \$ 750,000 \\\hline \text { Less cost of goods sold } & 700,000 & 525,000 \\\hline \text { Gross margin } & 300,000 & 225,000 \\\hline \text { Less operating expenses } & 222,000 & 210,000 \\\hline \text { Net income } & \$ 78,000 & \$ 15,000 \\\hline\end{array}$$
-What is the best estimate of the company's total fixed operating expenses per year

• A)$0.
• B)$174,000.
• C)$44,000.
• D)$80,000.

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Definitions:

Barber

A person whose profession involves cutting, dressing, grooming, styling and shaving men's and boys' hair or beards.

Purely Competitive

A market structure characterized by many small firms producing an identical product, where no single firm can influence the market price.

Wage Rate

The fixed amount of compensation paid to an employee by an employer in exchange for work performed, typically expressed per hour or year.