The Exploratory Fund Is a New Closed-End Fund Which Just

question 7

Multiple Choice

The Exploratory Fund is a new closed-end fund which just offered its shares to the public.The fund raised $65 million and each share sold for $10.The fee for the fund promoter was 6.5 percent of the initial proceeds.What was the value of your initial $20,000 purchase before the shares began trading in the marketplace?

• A)$18,400
• B)$18,700
• C)$19,100
• D)$20,000
• E)$21,300

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Definitions:

Fixed Overhead

Expenditures that are unaffected by changes in production or sales volume, including rental fees, employee salaries, and insurance premiums.

Job-Order Costing

An accounting method that assigns costs to specific production batches or jobs, useful in industries where goods or services are custom-produced.

Automated Shaper

A machine tool operated using automation for shaping wood, metal, or other materials, enhancing precision and productivity.

Manufacturing Overhead

All manufacturing costs that are not directly related to the production of a product, including indirect labor, maintenance, and utilities.