Fuchsia Inc

question 88

Multiple Choice

Fuchsia Inc. provides automobile services in the local community. The company provides the following information for the month of March: Fuchsia provided services to 1,500 clients in the month of March and generated $20,500 as revenue. How much is the cost per service?

• A)$11.77
• B)$5.18
• C)$13.67
• D)$10.63

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Definitions:

Marginal Cost

The increase or decrease in the total cost that arises from producing one additional unit of a good or service.

Sales

The activity or business of selling goods or services, generating revenue for companies.

Implicit Costs

The opportunity costs of using resources owned by the firm for its own use rather than selling those resources.

Explicit Costs

Direct, out-of-pocket payments for resources employed by firms for production, such as wages or rent.