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 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

Answer 1

The answer has been presented in the supporting sheet.