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

question 460

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 total cost was

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

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Definitions:

Foreign Exchange Gain

A profit that results from an increase in value of a foreign currency relative to the home currency in which a company's foreign currency denominated assets are valued.

Merchandise

Goods or products that are bought, sold, or traded in the retail environment.

Foreign Exchange Gain

A foreign exchange gain occurs when a company holds assets or liabilities in foreign currencies and the value of these increases due to favourable changes in exchange rates.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and net income.