Solved

Use the Following to Answer Questions -(Table: Costs of Producing Bagels)Use Table: Costs of Producing Bagels

question 21

Multiple Choice

Use the following to answer questions : $\begin{array}{l}\text { Table: Costs of Producing Bagels }\\\begin{array} { c c c } \hline \begin{array} { c } \text { Quantity } \\\text { of Bagels } \\\text { (per period) }\end{array} & \begin{array} { c } \text { Total } \\\text { Variable Costs }\end{array} & \begin{array} { c } \text { Total } \\\text { Fixed Costs }\end{array} \\\hline 0 & \$ 0.00 & \$ 0.10 \\1 & 0.20 & 0.10 \\2 & 0.30 & 0.10 \\3 & 0.35 & 0.10 \\4 & 0.45 & 0.10 \\5 & 0.60 & 0.10 \\6 & 0.80 & 0.10 \\7 & 1.05 & 0.10 \\8 & 1.35 & 0.10 \\\hline\end{array}\end{array}$
-(Table: Costs of Producing Bagels) Use Table: Costs of Producing Bagels.The average total cost of producing six bagels is:

Definitions:

Net Present Value

A calculation used to assess the profitability of an investment by summing the present values of its expected cash flows minus the initial investment cost.

Financial Instruments

Agreements resulting in one party acquiring a financial asset while the opposite party incurs a financial liability or issues an equity instrument.

Derivative

A contract that changes value in response to an underlying variable, requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors, and is settled at a future date.

Primary

Refers to being of first importance; main or most significant in terms of consideration or development.