Carl Is Considering Attending a Concert with a Ticket Price

question 148

Multiple Choice

Carl is considering attending a concert with a ticket price of $35.He estimates that the cost of driving to the concert and parking there will total an additional $20.In order to attend the concert,Carl will have to take time off from his part-time job.He estimates that he will lose 5 hours at work,at a wage of $6 per hour.Carl's opportunity cost of attending the concert equals

• A) $35
• B) $55
• C) $30
• D) $65
• E) $85

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Definitions:

EBIAT

Earnings Before Interest After Taxes, a measure of a company's profitability that excludes interest expenses but includes taxes.

Amortization

The process of spreading out a loan into a series of fixed payments over time, accounting for both principal and interest.

Capital Expenditures

Funds spent by a company to acquire or upgrade physical assets such as equipment or property.

Profits After Tax

The net income a company retains after paying all its taxes.