Elinor Sells Cathy a Horse for $2,000

question 37

Multiple Choice

Elinor sells Cathy a horse for $2,000.When Elinor goes to the bank to deposit Cathy's check,the check bounces.Elinor is furious and files suit against Cathy.Elinor probably filed her suit in

• A)a small claims court.
• B)a domestic relations court.
• C)a municipal court.
• D)a probate court.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance expenses.

Break Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.

Variable Costs

Costs that change in direct proportion to changes in levels of activity or production volume, such as materials and labor.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance, necessary for running a business.