Table 13-7 Teacher's Helper Is a Small Company That Has a Subcontract

question 35

Multiple Choice

Table 13-7
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 13-7.How many instructional modules are produced when marginal cost is $1,300?

• A)4
• B)5
• C)7

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Definitions:

Total Cost

The aggregate monetary value of all materials, labor, overhead, and expenses spent on a project or production.

Net Income

The amount of money left after all expenses, taxes, and deductions have been subtracted from total revenue.

CVP Analysis

Cost-Volume-Profit Analysis, a method used in managerial accounting to understand the impact of varying levels of costs and volume on operating profit.

Variable Cost

Expenses that vary directly with the amount of products or services a company generates.