In the Table Below,the Capital Stock Is Fixed at 40

question 33

Multiple Choice

In the table below,the capital stock is fixed at 40 units,the price of capital is $15 per unit,and the price of labor is $80 per unit. If the firm produces 180 units of output,what is total variable cost?

• A)$1,200
• B)$1,800
• C)$14,400
• D)$17,100
• E)none of the above

---

Definitions:

Uncollectible Receivables

Accounts receivable that a company has determined are unlikely to be collected and thus are written off as a bad debt expense.

Bad Debt Expense

An expense reported on the income statement, reflecting the cost of debts that are deemed uncollectible.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the amount of accounts receivable that may not be collectible.

Uncollectible Expenses

Costs resulting from customers' failure to pay what they owe, also known as bad debts.