The Table Below Shows How Total Donations, Average Donations, Total

question 28

Multiple Choice

The table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities. The President of State U decides to hire fundraising employees as long as their average benefit exceeds their average cost.This results in ______ employees being hired and a net benefit (total donations minus total labor costs) of ______.

• A)5; $17,080
• B)5; $67,080
• C)4; $60,000
• D)4; $22,000

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Definitions:

Credit Postings

Entries made on the credit side of an account ledger, indicating an increase in liability, revenue, or equity accounts, or a decrease in asset or expense accounts.

Liability Account

An accounting record used to track obligations the company owes to others, such as loans, leases, or accounts payable.

Expense Account

An account in which businesses record and track expenditures related to specific activities, such as travel or entertainment, for accounting purposes.

Credit Postings

Entries made on the credit side of an account, indicating an increase in liabilities, revenue, or equity and a decrease in assets.