The Meat Mart Has Computed Its Fixed Costs to Be

question 60

Multiple Choice

The Meat Mart has computed its fixed costs to be $.38 per pound given an average daily sales level of 500 pounds.It charges $5.59 a pound for top-grade ground beef.The variable cost per pound is $2.64.The tax rate is 34 percent.The accounting profit breakeven point is 211.5 pounds per day.What is the amount of the depreciation expense?

• A)$266.67
• B)$433.93
• C)$384.01
• D)$128.09
• E)$233.33

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Definitions:

Internet Markets

Markets that operate online, enabling buyers and sellers to transact over the internet, which often leads to reduced costs and wider geographical reach.

Network Effects

The effect that additional users of a good or service have on the value of that product to others, typically increasing the value with more users.

Natural Monopoly

A market structure where a single firm can provide a good or service at a lower cost than any potential competitors, usually due to economies of scale.

Standard Product

A product that is uniform in quality and specifications, produced in large quantities, and often interchangeable with similar products from other manufacturers.