Use the Following to Answer Questions

question 195

Multiple Choice

Use the following to answer questions:
-(Table: Variable Costs for Lawns) Look at the table Variable Costs for Lawns. During the summer, Alex runs a lawn-mowing service, and lawn-mowing is a perfectly competitive industry. Assume that costs are constant in each interval; that is, the variable cost of mowing 1 through 10 lawns is $100. His only fixed cost is $1,000 for the mower. His variable costs include fuel, his time, and mower parts. Which of the following is a point on the industry short-run supply curve?

• A) P = $5; Q = 100.
• B) P = $10; Q = 1,000.
• C) P = $40; Q = 1,100.
• D) P = $70; Q = 5,000.

Realize the financial representation of sales tax in sales transactions.

Understand the terms of sale and their impact on freight charges and ownership of goods.

Recognize the differences in financial statement accounts between service and merchandising businesses.

Understand the roles and definitions of various shipping terms, including FOB destination and FOB shipping point.

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Definitions:

Retailers

Businesses that sell goods directly to consumers, acting as the final link in the supply chain between manufacturers and the end customer.

Mumbai Dabbawalas

A cost-effective and highly dependable service in Mumbai, India, for delivering and collecting lunchboxes.

Home-Cooked Lunches

Meals prepared at home, typically using fresh ingredients, rather than purchased from a restaurant or fast-food outlet.

Deliver

The process of transporting goods from a source location to a predetermined destination, fulfilling customer orders or supply needs.