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Nett Labs Orders 30 Desktop Computers from IDeal, a Local

question 57

Multiple Choice

Nett Labs orders 30 desktop computers from iDeal, a local computer dealer. Nett Labs requires that each computer has a 2.6 GHz processor, 500 GB hard disk, and Windows operating system. iDeal supplies 30 desktop computers, each with a 2 GHz processor, 500 GB hard disk, and Windows operating system. Which of the following terms hold true for iDeal's performance?


Definitions:

Advertising Budget

The amount of money allocated to advertising and promotional activities to generate sales and awareness of products or services.

Monthly Sales

The total amount of sales revenue generated within a calendar month.

Net Operating Income

The total profit of a business after operating expenses are subtracted from gross revenue, but before taxes and interest are deducted.

Variable Expenses Per Unit

Costs that change directly in proportion to changes in production or sales volume, calculated on a per unit basis.

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