Use the Information Below for Main Street Corp

question 119

Multiple Choice

Use the information below for Main Street Corp.for 2013 and 2014 to answer the following question. Assume that there were no retained earnings transactions other than those dealing with dividends and net income.How much dividends did Main Street declare during 2014?

• A)$ 95,000
• B)$105,000
• C)$140,000
• D)$150,000

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Definitions:

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

Marginal Cost

The escalation in the entire cost linked to the output of an additional unit.

Average Cost

The cost per unit is determined by dividing the overall production cost by the total units produced.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the quantity of output produced.