Krazy Key Chains Sell for $1

question 63

Multiple Choice

Krazy Key Chains sell for $1.00 each. If variable costs are $0.50 each and total fixed costs are $2,500, what is the profit if 10,000 units are sold?

• A) $5,000
• B) $10,000
• C) $2,500
• D) $7,500
• E) $6,000

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Definitions:

Balance Sheet

A document that provides a snapshot of a corporation's financial status, by listing its assets, debts, and the equity available to its shareholders at a given time.

Financial Position

A snapshot of an entity's finances at a particular time, including assets, liabilities, and equity, showing its economic standing.

Liabilities

Financial obligations or debts that a business or individual owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Assets

Items of value owned by a person or company, including physical property, financial holdings, and intangible items that can be converted into cash.