(Table: Consumer Surplus) Look at the Table Consumer Surplus

question 187

Essay

(Table: Consumer Surplus) Look at the table Consumer Surplus.If the tickets to The Nutty Nutcracker
are free and there is no other market for tickets, the total consumer surplus for the five students is:
A.$0.
B.$100.
C.$150.
D.$320.

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Definitions:

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a product.

Absorption Costing

A method of costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overheads - in the cost of a product.

Net Operating Income

This is the total profit of a business after operating expenses are subtracted from gross revenue but before taxes and interest expenses are deducted.

Absorption Costing

A method of product costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.