Question 1
Refer to Scenario 9.2 below to answer the question(s) that follow.
SCENARIO 9.2: Tom borrowed $40,000 from his parents to open a donut stand. He agrees to pay his parents a 5% yearly return on the money they lent him. His other yearly fixed costs equal $10,000. His variable costs equal $25,000. He sold 40,000 dozen donuts during the year at a price of $2.00 per dozen.
Refer to Scenario 9.2. Tom's total fixed costs equal
◦ $1,000.
◦ $10,000.
◦ $12,000.
◦ $21,000.
Question 2
Refer to Scenario 9.2 below to answer the question(s) that follow.
SCENARIO 9.2: Tom borrowed $40,000 from his parents to open a donut stand. He agrees to pay his parents a 5% yearly return on the money they lent him. His other yearly fixed costs equal $10,000. His variable costs equal $25,000. He sold 40,000 dozen donuts during the year at a price of $2.00 per dozen.
Refer to Scenario 9.2. Tom's total costs equal
◦ $37,000.
◦ $40,000.
◦ $50,000.
◦ $59,000.
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