Refer to Scenario 9.9 below to answer the question(s) that ...

[karateprodigy]

Refer to Scenario 9.9 below to answer the question(s) that follow. 


SCENARIO 9.9: Sponsors invest $250,000 in a new greeting card business on the promise that they will earn a return of 10% per year on their investment. The business sells 52,000 greeting cards per year. The fixed costs for the business include the return to investors and $79,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($3,000 per week). The business is open 52 weeks per year.





Refer to Scenario 9.9. The annual fixed costs for the business sum to ________.

◦ $25,000
◦ $79,000
◦ $104,000
◦ $208,000

[dyrone]

$104,000

[Jramos095]

Refer to Scenario 9.9 below to answer the question(s) that follow. 


SCENARIO 9.9: Sponsors invest $250,000 in a new greeting card business on the promise that they will earn a return of 10% per year on their investment. The business sells 52,000 greeting cards per year. The fixed costs for the business include the return to investors and $79,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($3,000 per week). The business is open 52 weeks per year.





Refer to Scenario 9.9. The business is earning exactly a normal profit. Thus, the average price per greeting card must be ________.

◦ $1.52
◦ $2
◦ $4
◦ $6

[krakiolit]

$6