Answer the Following Questions Using the Information Below:
Stosur Courtside

question 1

Multiple Choice

Answer the following questions using the information below:
Stosur Courtside Caterers is a small company that has hired you to perform some management advisory services.The following information pertains to 2018 operations.
$$\begin{array} { l r } \text { Sales (5000 microwave ovens) } & \$ 1350000 \\\text { Cost of goods sold } & 540000 \\\text { Store manager's salary per year } & 75000 \\\text { Operating costs per year } & 225000 \\\text { Advertising and promotion per year } & 25000 \\\text { Commissions (4\% of sales) } & 67500\end{array}$$
-What were total fixed costs for 2018?

• A)$250 000
• B)$225 000
• C)$325 000
• D)$932 500

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Definitions:

Buyer

An individual or entity that purchases goods or services from another party.

Ownership Rights

Legal rights that confer the ability to use, control, and dispose of property or assets.

Passing of Title

The formal process of transferring ownership rights of a property from one entity to another.

Seller

The party that sells or agrees to sell goods or services to another party (buyer) in a commercial transaction.