A New Company Manufactures Tennis Rackets

question 24

Multiple Choice

A new company manufactures tennis rackets.The fixed expenses are $78,490,and the variable expenses are $14 per racket produced.What is the expense of producing 3,500 rackets?

• A) $49,000
• B) $81,990
• C) $127,490
• D) $147,900

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Definitions:

Deed of Trust

A legal document in some states that involves a borrower, lender, and a trustee, securing a real estate transaction as collateral for a loan.

Surety

A person or entity that takes responsibility for the performance of another's obligations, such as fulfilling the terms of a contract or repaying a loan.

Guarantor

An individual or entity that agrees to be responsible for another's debt or obligations if the original party fails to meet their commitments.

Trust Deed

A legal document in real estate transactions where the title of a property is transferred to a trustee as security for a loan until the borrower repays the loan.