Table 13-9 Teacher's Helper Is a Small Company That Has a Subcontract

question 230

Multiple Choice

Table 13-9
Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts.The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month.

-Refer to Table 13-9.What is the marginal cost of creating the tenth instructional module in a given month?

• A) $900
• B) $1,250
• C) $2,500
• D) $3,060

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuing party, often used in the accounting of share capital.

Capital in Excess of Par

The amount by which the proceeds from the issuance of shares exceed the par value of the shares, often recorded in the shareholders' equity section of the balance sheet.

Homemade Dividend

A strategy where investors create their own dividend policy by selling a portion of their portfolio.

Required Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular security or project.