Use the Following Information to Determine the Cash Fixed Costs

question 47

Multiple Choice

Use the following information to determine the cash fixed costs: Administrative expenses = $200,000; Marketing expenses = $180,000; Depreciation expenses = $100,000; and Interest expenses = $20,000.

• A) $380,000
• B) $400,000
• C) $480,000
• D) $500,000
• E) $620,000

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Definitions:

Output Level

Refers to the quantity of goods or services produced by a firm or an economy at a given time.

Marginal Revenue

The additional revenue that is gained from selling one more unit of a product or service.

Marginal Cost

Expenses incurred from making one more unit of a product or service.

Average Revenue

The mean amount of money earned per unit sold, calculated by dividing the total revenue by the quantity of units sold.