A Company That Makes Customized Pens Has Calculated Their Revenue

question 24

Multiple Choice

A company that makes customized pens has calculated their revenue and costs as follows for the most recent fiscal period: Costs:
What are the company's fixed costs per fiscal period?

• A)$105 000
• B)$115 000
• C)$80 000
• D)$85 000
• E)$120 000

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Definitions:

Statement of Income

A financial document that provides a summary of a company's revenues, expenses, and net income over a specific period.

Statement of Financial Position

A financial statement that details a company's assets, liabilities, and shareholders' equity at a specific point in time.

Cash Basis

An accounting method where revenues and expenses are recognized when cash is received or paid, as opposed to when they are incurred.