Please Refer to Table 4-5 for the Following Questions

question 108

Multiple Choice

Please refer to Table 4-5 for the following questions.
Table 4-5
Yen Inc.
Balance Sheet

Yen Inc.
Income Statement
For the year ended December 31, 2010

-Based on the information contained in Tables 4-5,what was Yen's return on common equity for 2010?

• A) 50.0%
• B) 85.0%
• C) 121.4%
• D) 24.3%

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Definitions:

Total Variable Cost

The overall expenses that change in proportion to the level of production or business activity.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, showing the cost of fixed resources per unit of output.

Total Fixed Costs

Expenses incurred by a business that do not vary with the level of production or sales, including lease payments and salaries of permanent staff.

Total Variable Costs

The sum of all costs that vary with the level of production, including materials and labor.