Recall the Application About Running a Lawn-Cutting Business Using Solar-Powered

question 90

Multiple Choice

Recall the Application about running a lawn-cutting business using solar-powered equipment to answer the following question(s) .
-If you have $10,000 to start a lawn-cutting business, the interest rate is 4 percent, your cost of equipment is $3,000, and the earnings you sacrifice from working at another job are $32,000, your yearly cost of doing business would be

• A) $13,000.
• B) $13,400.
• C) $35,400.
• D) $45,000.

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Definitions:

Fixed Selling

Costs that remain constant regardless of the volume of goods or services sold.

Direct Labor-Hours

The total hours worked by employees that are directly involved in the manufacturing process.

Raw Materials Cost

The expense of materials that are used in the manufacturing process to create goods, not yet processed or altered.

Direct Labor Wage

The remuneration paid to employees who are directly involved in the production of goods or the provision of services.