Question
A)Smith Company makes jars of homemade strawberry jam. Each jar is priced at $6.00 per unit. The costs of the ingredients to make each jar
A)Smith Company makes jars of homemade strawberry jam. Each jar is priced at $6.00 per unit. The costs of the ingredients to make each jar are $2.00. The containing jar itself costs $1.00. The company has monthly expenses of $2,000 for rent and insurance, $300 for heat and electricity, and $5,000 in monthly salary expenses. Last month the company sold 3,000 jars.
What was Smith Company's TOTAL REVENUE for the month?
A options:
| $15,000 |
| $18,000 |
| $25,000 |
| $30,000 |
B)
Smith Company makes jars of homemade strawberry jam. Each jar is priced at $6.00 per unit. The costs of the ingredients to make each jar are $2.00. The containing jar itself costs $1.00. The company has monthly expenses of $2,000 for rent and insurance, $300 for heat and electricity, and $5,000 in monthly salary expenses. Last month the company sold 3,000 jars.
What is the UNIT VARIABLE COST per jar?
B options:
| $1.00 |
| $2.00 |
| $3.00 |
| $4.00 |
C)
Smith Company makes jars of homemade strawberry jam. Each jar is priced at $6.00 per unit. The costs of the ingredients to make each jar are $2.00. The containing jar itself costs $1.00. The company has monthly expenses of $2,000 for rent and insurance, $300 for heat and electricity, and $5,000 in monthly salary expenses. Last month the company sold 3,000 jars.
What is the TOTAL VARIABLE COST for the month?
C options:
| $6,000 |
| $7,000 |
| $8,000 |
| $9,000 |
D)
Smith Company makes jars of homemade strawberry jam. Each jar is priced at $6.00 per unit. The costs of the ingredients to make each jar are $2.00. The containing jar itself costs $1.00. The company has monthly expenses of $2,000 for rent and insurance, $300 for heat and electricity, and $5,000 in monthly salary expenses. Last month the company sold 3,000 jars.
What is the TOTAL FIXED COST associated with producing the kits for one month?
D options:
| $6,300 |
| $7,300 |
| $8,300 |
| $9,300 |
E)
Smith Company makes jars of homemade strawberry jam. Each jar is priced at $6.00 per unit. The costs of the ingredients to make each jar are $2.00. The containing jar itself costs $1.00. The company has monthly expenses of $2,000 for rent and insurance, $300 for heat and electricity, and $5,000 in monthly salary expenses. Last month the company sold 3,000 jars.
What was Smith Company's PROFIT for the month?
E options:
| $1,700 |
| $1,800 |
| $1,900 |
| $2,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started