A Not-For-Profit Organization Published a Monthly Magazine That Had 15,000

question 86

Multiple Choice

A not-for-profit organization published a monthly magazine that had 15,000 subscribers on January 1,2013.The number of subscribers increased steadily throughout the year and at December 31,2013,there were 16,200 subscribers.The annual magazine subscription cost was $10 on January 1,2013 and was increased to $12 for new members on April 1,2013.Subscriptions are paid in full at the beginning of the member term.An auditor should expect that the revenue from subscriptions for the year ended December 31,2013,would be approximately

• A) $179,400.
• B) $171,600.
• C) $164,400.
• D) $163,800.

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Definitions:

Sole Proprietor

An individual who owns and operates a business alone, bearing all the responsibilities and benefits of the business.

Short Run

A timeline in economics where at least one factor of production is fixed, constraining the ability to adjust to changing economic conditions.

Long Run

In economics, a period of time in which all factors of production and costs are variable and can be adjusted.

New Entrants

Businesses or individuals that recently entered a market or industry, bringing new competition and potentially disrupting existing dynamics.