Table 13-13 Teacher's Helper Is a Small Company That Has a Subcontract

question 2

Multiple Choice

Table 13-13
Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month.
-Refer to Table 13-13. What is the average variable cost for the month if 6 instructional modules are produced?

• A)$180.00
• B)$533.33
• C)$700.00
• D)$713.33

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Definitions:

Income From Operations

The profit realized from a business's core operating activities, excluding deductions of interest and taxes.

Multiple-Step Income Statement

A detailed financial statement that separates operating revenues and expenses from non-operating ones, providing a clear view of a company's financial performance.

Sales Discounts

Reductions in the price of goods or services that are offered by sellers to incentivize prompt payment by buyers.

Net Sales

The revenue a company earns from its sales activities, minus the costs associated with returns, compensation for faulty or missing items, and permitted discounts.