Use This Information to Answer the Following Question

question 60

Multiple Choice

Use this information to answer the following question. Here is the balance sheet for Abbot Box Company,Inc.:

If the equipment were sold for $13,000,then the Retained Earnings account would

• A) increase by $37,000.
• B) increase by $13,000.
• C) decrease by $13,000.
• D) stay the same.

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Definitions:

Marginal Cost

The escalation in the entire cost linked to the output of an additional unit.

Average Cost

The cost per unit is determined by dividing the overall production cost by the total units produced.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the quantity of output produced.

Total Cost

The sum of fixed and variable costs incurred in producing a given level of output.