Scenario 12-16 A Certain Firm Produces and Sells Staplers.Last Year,it Produced 7,000

question 136

Multiple Choice

Scenario 12-16
A certain firm produces and sells staplers.Last year,it produced 7,000 staplers and sold each stapler for $6.In producing the 7,000 staplers,it incurred variable costs of $28,000 and a total cost of $45,000.
-Refer to Scenario 12-16.In producing the 7,000 staplers,the firm's average variable cost was

• A) $2.43.
• B) $4.00.
• C) $6.00.
• D) $6.43.

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Definitions:

Calendar Quarter

A period of three months on the Gregorian calendar that is used in business and finance to split the year into four parts.

Gross Pay

The total amount of money an employee earns before any deductions are taken out such as taxes or retirement contributions.

FICA-Medicare

A federal tax in the United States deducted from workers' paychecks to fund the Medicare program, which provides health insurance to individuals who are 65 years of age or older or who meet other specific criteria.

State Unemployment Funds

Reserves maintained by individual U.S. states to provide unemployment benefits to eligible laid-off workers.