Refer to Scenario 9.4 below to answer the question(s) that follow.
SCENARIO 9.4: Sponsors invest $100,000 in a new deli on the promise that they will earn a return of 10% per year on their investment. The deli sells 52,000 sandwiches per year. The deli's fixed costs include the return to investors and $42,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($2,000 per week) . The deli is open 52 weeks per year.
-Refer to Scenario 9.4. The annual fixed costs of the deli are
A) $10,000.
B) $42,000.
C) $52,000.
D) $156,000.
Correct Answer:
Verified
Q6: Refer to Scenario 9.3 below to answer
Q7: Refer to Scenario 9.3 below to answer
Q8: Firms that are "breaking even" are
A) earning
Q9: Refer to Scenario 9.3 below to answer
Q10: Refer to Scenario 9.2 below to answer
Q12: Refer to Scenario 9.3 below to answer
Q13: Refer to Scenario 9.1 below to answer
Q14: In the short run, firms earning a
Q15: Refer to Scenario 9.1 below to answer
Q16: Refer to Scenario 9.2 below to answer
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