Dapper Hat Makers Is in the Business of Designing and Producing

question 154

Multiple Choice

Dapper Hat Makers is in the business of designing and producing specialty hats. The material used for derbies costs $4.50 per unit, and Dapper pays each of its two full-time employees $250 per week. If Employee A makes 15 derbies in one week, what is the variable cost per derby? (Round to two decimal places where necessary.)

• A) $4.50
• B) $15.00
• C) $16.67
• D) $21.17

---

Definitions:

Revenue And Expenses

Refers to the income generated from normal business operations and the costs incurred to generate that income.

Sharing Profits And Losses

A method used in partnerships and some other business arrangements to distribute the financial results of the business among its owners or members.

Equally

In a manner that is the same in quantity, size, degree, or value for all parties involved.

Salary Allowance

Additional compensation provided to employees on top of their regular salary, often for specific purposes or expenses.