Using the Data Below,calculate Living Expenses. Assets

question 25

Multiple Choice

Using the data below,calculate living expenses. Assets
$100,000
Liabilities
37,500
Prior years's net worth
32,500
Income
55,000

• A)$57,500
• B)$17,500
• C)$20,000
• D)$25,000

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Definitions:

Total Variable

Expenses that change in proportion to the activity of a business, such as costs of goods sold, which vary with the level of production or sales volume.

Average Variable Cost

The variable costs of production (costs that change with output level) divided by the quantity of output, indicating the average variable cost per unit.

Producing Purses

Producing purses involves the manufacturing and assembling of various materials to create handbags and similar accessories.

Average Fixed Cost

The sum of all production fixed costs divided by the number of units produced.