Carol's Dolls Has Fixed Operating Costs of $25,000

question 14

Multiple Choice

Carol's Dolls has fixed operating costs of $25,000. Its sale price is $55 per doll, and its variable operating cost is $30 per doll. It sells 3,000 dolls per month. The firm's earnings before interest and taxes is ________.

• A) $37,500
• B) $55,000
• C) $75,000
• D) $50,000

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Definitions:

Mass Spectacle

Large-scale events or performances intended for entertainment and viewed by a large audience, often emphasizing grandeur and excitement.

Public Entertainment

Activities and performances, such as concerts, movies, and sports events, available to the general population for enjoyment and relaxation.

Intellectual Undertaking

A project or activity that involves significant mental effort, creativity, or critical thinking, often associated with academic or scholarly work.

Martin Van Buren

The eighth President of the United States, known for his role in the formation of the Democratic Party and his efforts to deal with the Panic of 1837.