Fuchsia Ltd Provides Automobile Services in the Local Community Fuchsia Provided Services to 1500 Clients in the Month of Provides

question 13

Multiple Choice

Fuchsia Ltd provides automobile services in the local community.The company provides the following information for the month of March:
$$\begin{array} { | l | l | } \hline \text { Building rent expense } & \$ 5000 \\\hline \text { Depreciation expense -equipment } & 1400 \\\hline \text { Supplies expense } & 7500 \\\hline \text { Electricity and gas expense } & 2350 \\\hline\end{array}$$
Fuchsia provided services to 1500 clients in the month of March and generated $22,500 as revenue.
How much is the cost per service?

• A) $3.33
• B) $9.57
• C) $10.83
• D) $5.83

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Definitions:

Interest Rate Model

A mathematical model used to forecast future interest rates or to price financial derivatives and manage interest rate risk.

Default Risk Premium

The additional amount a borrower must pay to compensate the lender for assuming the risk of default.

Pure Interest Rate

The earning power of money. An interest rate without an inflation component or premiums for risk.

Inverted Yield Curve

A rare financial situation where long-term debt instruments have a lower yield than short-term debt instruments of the same credit quality.