On January 1, Eastern College Received $1,200,000 from Its Students

question 37

Multiple Choice

On January 1, Eastern College received $1,200,000 from its students for the spring semester that it recorded in Unearned Tuition and Fees. The term spans four months beginning on January 2 and the college spreads the revenue evenly over the months of the term. What amount of tuition revenue should the college recognize on January 31?

• A)$300,000.
• B)$600,000.
• C)$800,000.
• D)$900,000.
• E)$1,200,000.

---

Definitions:

Total Revenue

Total Revenue refers to the total receipts from sales of goods or services by a firm over a specified period.

Variable Costs

refer to expenses that change in proportion to the activity of a business, such as costs for raw materials or production volume.

Fixed Costs

Costs that do not change with the level of output produced, such as rent or salaries.

AVC Curve

The Average Variable Cost (AVC) Curve is a graphical representation showing the relationship between a firm's output level and its average variable cost.