What Is the Total Amount of Unrealized Profit (After-Tax) Remaining

question 20

Multiple Choice

What is the total amount of unrealized profit (after-tax) remaining at the end of 2019?

• A) Nil.
• B) $26,000.
• C) $27,000.
• D)$30,000.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales.

Short Run

A period in which at least one input, such as plant size or the number of firms in the market, is fixed and cannot be changed.

Fixed Cost

Any cost that does not depend on the firms’ level of output. These costs are incurred even if the firm is producing nothing. There are no fixed costs in the long run.

Marginal Costs

Marginal Costs involve the additional expenses incurred from the production of one extra unit of a product or service.