Table 2.2 -Krystal Runs a Nail Salon and Needs to Decide How

question 13

Multiple Choice

Table 2.2

-Krystal runs a nail salon and needs to decide how many hours to stay open. Table 2.2 illustrates her marginal costs of staying open for each additional hour. Suppose that Krystal's marginal benefit of staying open per hour is $30. If she is following the marginal principle, how many hours should Krystal stay open?

• A) 4 hours
• B) 5 hours
• C) 6 hours
• D) 7 hours

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Definitions:

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financial activities.

Operating Activities

Activities that are directly related to the day-to-day operations of a business, including revenue generation and expense incurrence.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in non-cash accounts to calculate operating cash flow.

Net Income

A company's overall income after deducting all expenses and taxation from gross revenue.