Technical Engineering Presently Leases a Copying Machine on a Monthly

question 39

Multiple Choice

Technical Engineering presently leases a copying machine on a monthly basis. The lease agreement requires a fixed fee each month in addition to a charge per copy. Technical Engineering made 2400 copies and paid a total of $162 in rent in September and in October they paid $195 for 3500 copies. Determine Technical Engineering's variable cost per copy.

• A) $0.06
• B) $0.04
• C) $0.03
• D) $0.01

---

Definitions:

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting the liquidity level.

Free Cash Flow

Free cash flow is the amount of cash a company generates after accounting for capital expenditures, indicating the financial flexibility of the business.

Operating Activities

Operating activities relate to the core business functions of a company, including production, sales, and distribution, and their impact on the company's cash flow.