Answer the Following Questions Using the Information Below:
Genend's Good

question 108

Multiple Choice

Answer the following questions using the information below:
Genend's Good Value Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2015 operations.
$\begin{array}{lr}\text { Sales ( } 6,000 \text { microwave ovens) } & \$ 1,740,000 \\\text { Cost of goods sold } & 960,000 \\\text { Store manager's salary per year } & 100,000 \\\text { Operating costs per year } & 250,000 \\\text { Advertising and promotion per year } & 30,000 \\\text { Commissions (3\% of sales) } & 52,200\end{array}$
-What were the total fixed costs for 2015?

• A) $1,392,200
• B) $380,000
• C) $350,000
• D) $1,012,200

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Definitions:

Marginal Cost Curve

A graphical representation that shows how the cost of producing one additional unit varies as production increases.

Average Cost Curve

A graphical representation showing how the cost per unit of producing goods changes with changes in the volume of goods produced, highlighting economies and diseconomies of scale.

Market Level Supply

The total quantity of a good or service that producers are willing to sell across the entire market at a given price level.

Marginal Costs

The swelling of total charges resulting from generating an extra unit of a good or service.