Table 13-6 Wooden Chair Factory

question 162

Multiple Choice

Table 13-6
Wooden Chair Factory
-Refer to Table 13-6. Each worker at the Wooden Chair Factory costs $12 per hour. The cost of each machine is $20 per day regardless of the number of chairs produced. Assume the number of machines does not change. If the factory produces at a rate of 78 chairs per hour, what is the total machine cost per day?

• A)$20
• B)$40
• C)$240
• D)We are unable to determine total machine costs from the information given.

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Definitions:

Financial Information

Data related to the financial status and performance of an entity, including income, expenses, assets, and liabilities.

Debt-to-Equity Ratio

A measure of a company's financial leverage indicating the proportion of company financing from debt compared to equity.

Balance Sheet

A Balance Sheet is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Corporation

A legal entity owned by shareholders, offering limited liability and existing independently of its owners.