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:

Outstanding Checks

Checks that have been written and recorded in the issuer's accounting records but have not yet been cleared by the bank.

Automatic Transfer

A banking service that moves funds automatically from one account to another at scheduled intervals or under specific conditions.

Reconciled Balance

The balance of an account after adjustments have been made for discrepancies or outstanding items.

Bank Statement

A record provided by a bank detailing all transactions in an account over a specified period.