Answer the Following Questions Using the Information Below:
Stosur Courtside

question 182

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 are the estimated total costs if Stosur expects to sell 6500 units next year?

• A)$932 500
• B)$1 104 750
• C)$665 000
• D)$1 017 500

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Definitions:

GDP Deflator

A means of determining the price rates for all new, domestically crafted, final goods and services within an economy.

Real GDP

Real GDP (Gross Domestic Product) measures a country's economic output adjusted for inflation, providing a more accurate view of an economy's size and growth rate over time.

GDP

The comprehensive market valuation of all final goods and services fabricated within a country's geographical boundaries in a set period defines Gross Domestic Product.

Gross Domestic Product

The total value of all goods and services produced within a country's borders in a specific time period, serving as a comprehensive measure of economic activity.