Table 13-11 Teacher's Helper Is a Small Company That Has a Subcontract

question 213

Multiple Choice

Table 13-11
Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month.

-Refer to Table 13-11.One month,Teacher's Helper produced 18 instructional modules.What was the average fixed cost for that month?

• A) $60
• B) $108
• C) $811
• D) It can't be determined from the information given.

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Definitions:

Balance Sheet

A document presenting a firm's assets, liabilities, and owner's equity at a certain date.

Accounts Receivable

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

Cash Effect

The impact of transactions on the cash position of a company, including inflows and outflows.

Insurance Expense

The cost recognized in accounting for premiums paid on insurance policies covering various risks to a business.