Jerry's Ice-Cream Parlor Is Hosting Andrew's Birthday Party in One

question 90

Multiple Choice

Jerry's ice-cream parlor is hosting Andrew's birthday party in one week.Overall,25 to 30 people will attend the party and Andrew's costs are as follows: $200 for rent,$150 for the cake,$3 per person for customized invitations,$15 per person for the meal,$50 for decorations,and $8 per person for party favors.For simplicity,assume that Andrew is considered one of the guests and he receives an invitation too.Assuming that 25 people attend the party,the average variable cost of the party is:

• A) $16
• B) $1,050
• C) $42
• D) $350
• E) $26

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Definitions:

Statement Of Income Accounts

A financial report that shows a company's revenues, expenses, and net income over a specific period, highlighting its profitability.

Accounting Cycle

Describes the systematic process of recording and processing all financial transactions of a company, from when the transaction occurs to its representation in the financial statements.

Adjusting Entries

Documentation of transactions at the conclusion of a financial cycle to accurately apportion profits and costs to the period they were realized.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments are made, used to prepare financial statements.