Murphy Company Produces Flash Drives for Computers Which It Sells

question 70

Multiple Choice

Murphy Company produces flash drives for computers which it sells for $20 each. Each flash drive costs $6 of variable costs to make. During April 700 drives were sold. Fixed costs for April were $4 per unit for a total of $2800 for the month. How much does Murphy's operating income increase for each $1000 increase in revenue per month?

• A) $700
• B) $500
• C) $14000
• D) Not enough information to determine the answer.

Understand the method of calculating partnerships' capital account balances.

Comprehend how to allocate net income or loss in various partnership agreements.

Knowledge of the characteristics and types of business entities including partnerships.

Grasp how initial assets contributions are valued in partnerships.

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Definitions:

Synapse

The junction between two nerve cells where impulses pass by diffusion of neurotransmitters.

Neurotransmitters

Chemical messengers that transmit signals across a chemical synapse from one neuron to another, influencing body functions and behavior.

Synaptic Cleft

The small gap at a synapse between the neurons, through which neurotransmitters move from one neuron to another.

Action Potential

A rapid, temporary change in a cell's membrane potential, allowing for the transmission of nerve impulses.