Question 1
Refer to Scenario 9.6 below to answer the question(s) that follow.
SCENARIO 9.6: Celeste borrowed $40,000 from her brother to open a car wash. She pays her brother a 5% yearly return on the money he lent her. Her other yearly fixed costs equal $18,000. Her variable costs equal $40,000. In her first year, Amy sold 40,000 car washes at a price of $2.50 per car wash.
Refer to Scenario 9.6. Celeste's total fixed costs equal
◦ $2,000.
◦ $18,000.
◦ $20,000.
◦ $22,000.
Question 2
Refer to Scenario 9.6 below to answer the question(s) that follow.
SCENARIO 9.6: Celeste borrowed $40,000 from her brother to open a car wash. She pays her brother a 5% yearly return on the money he lent her. Her other yearly fixed costs equal $18,000. Her variable costs equal $40,000. In her first year, Amy sold 40,000 car washes at a price of $2.50 per car wash.
Refer to Scenario 9.6. Celeste's total costs equal
◦ $20,000.
◦ $40,000.
◦ $60,000.
◦ $100,000.
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