A Firm That Produces and Sells Toys Has a Factory

question 26

Multiple Choice

A firm that produces and sells toys has a factory located in New Town built on a 50,000 square feet plot of land. The following table gives information about the costs of production and output of the firm.
Table 6-1
$\begin{array}{|l|l|}\hline \text { Cost of plant and machinery } & \$ 20,000 \\\hline \text { Wages paid to labor } & \$ 4,000 \\\hline \text { Annual factory rent } & \$ 10,000 \\\hline \begin{array}{l}\text { Annual registration fees paid to an industry } \\\text { association }\end{array} & \$ 1,000 \\\hline \text { Marketing Costs } & \$ 20,000 \\\hline \text { Cost of raw materials used in production } & \$ 3,000 \\\hline \text { Cost of packaging used for the final product } & \$ 400 \\\hline \text { Number of toys produced per day } & 1,000 \\\hline \text { The price of a toy } & \$ 30 \\\hline\end{array}$

-Refer to Table 6-1. What is the average fixed cost of producing a toy?

• A) $38
• B) $20
• C) $40
• D) $51
• E) $30

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Definitions:

Administered

The act of managing or supervising the execution, use, or conduct of operations, laws, or policies.

Distal Convoluted Tubules

Tubes in the kidney where filtration, reabsorption, and secretion occur, resulting in the formation of urine.

Proximal Convoluted Tubules

The portion of the nephron in the kidney that is responsible for reabsorbing water, ions, and nutrients from the filtrate back into the blood.

Loop of Henle

A U-shaped portion of the nephron in the kidney, crucial for concentrating urine and recovering water and sodium from the urine.