Harvey Quit His Job at State University, Where He Earned

question 190

Multiple Choice

Harvey quit his job at State University, where he earned $62,000 a year. He figures his entrepreneurial talent or forgone entrepreneurial income to be $4,000 a year. To start the business, he cashed in $50,000 in bonds that earned 10 percent interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 10,000 units of software at $72 for each unit. Of the $72 per unit, $60 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building.The explicit costs of Harvey's firm in the first year were

• A)$120,000.
• B)$600,000.
• C)$49,000.
• D)$720,000.

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Definitions:

Consistent Results

Findings or outcomes from experiments or studies that are repeatedly similar under the same or similar conditions, indicating reliability.

Normal Curve

A statistical concept representing the distribution of a set of data that forms a bell-shaped curve, indicating average scores at the center and deviations spread equally around it.

American Population

Refers to the total number of people living in the United States of America at any given time.

American Schoolchildren

Refers to students attending elementary, middle, or high schools in the United States.