Use the Following to Answer Questions

question 185

Multiple Choice

Use the following to answer questions:
-(Table: Costs of Birthday Cakes) Look at the table Costs of Birthday Cakes. Assume that fixed costs are $10. What is the marginal cost of the fifth cake?

• A) $2
• B) $10
• C) $12
• D) $20

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.