Table 11-7 Table 11-7 Shows Cost Data for Lotus Lanterns, a Producer

question 197

Multiple Choice

Table 11-7

Table 11-7 shows cost data for Lotus Lanterns, a producer of whimsical night lights.
-Refer to Table 11-7.What is the variable cost of production when the firm produces 115 lanterns?

• A)$1,556
• B)$1,157
• C)$956
• D)$10.05

---

Definitions:

Personal Liability

An individual’s personal responsibility for debts or obligations. The owners of sole proprietorships and partnerships are personally liable for the debts and obligations incurred by their businesses. If their firms go bankrupt or cannot meet debts, the owners will be personally responsible for the debts.

Personal Asset

An item of value owned by an individual, including tangible assets like real estate or cars, and intangible assets like stocks or intellectual property.

Investment Account

A financial account that holds securities, shares, or other investments for the purpose of long-term growth or income.

Vacation Home

A secondary residence used for leisure and vacation purposes, not as a primary living space.