During Its First Year of Operations,Connor Company Paid $50,000 for Direct

question 98

Multiple Choice

During its first year of operations,Connor Company paid $50,000 for direct materials and $36,000 in wages for production workers.Lease payments and utilities on the production facilities amounted to $14,000.General,selling,and administrative expenses were $16,000.The company produced 5,000 units and sold 4,000 units for $30.00 a unit.The average cost to produce one unit is which of the following amounts?

• A) $20.00
• B) $16.00
• C) $18.40
• D) $25.00

---

Definitions:

Inferior Goods

Goods for which demand decreases as the income of the consumer increases, opposite to normal goods.

Demand Curve

An image that depicts how the price level of a good or service influences its required quantity within a designated period.

Number of Buyers

The total quantity of individuals or entities in a market that are potential or actual purchasers of goods and services.

Complement

A good or service that is used in conjunction with another good or service, often enhancing the value or use of the primary product.