The Karmic Deed Restaurant Uses All of the Following to Produce

question 62

Multiple Choice

The Karmic Deed Restaurant uses all of the following to produce vegetarian meals.Which of them is an example of physical capital?

• A)the owner's knowledge of how to prepare vegetarian entrees
• B)the money in the owner's account at the bank from which she borrowed money
• C)the tables and chairs in the restaurant
• D)the fresh fruits,vegetables,and grains the restaurant uses to prepare its meals

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Definitions:

Net Income

A company's total profit calculated by subtracting total expenses from total revenue.

Product Line

A series of related products offered by a company that serve similar functions or are targeted at a similar customer base.

Fixed Costs

Expenses that do not change with changes in the volume of production or sales, such as rent or salaries.

Contribution Margin

The difference between the sales revenue of a product and its variable costs, indicating how much contributes to covering fixed costs and generating profit.