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 O $1,000. O $10,000. O $12,000. O $21,000.
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 O $1,000. O $10,000. O $12,000. O $21,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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
O $1,000.
O $10,000.
$12,000.
O $21,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F43376af4-f97a-4ada-a0c5-f3c38584d133%2F4a2e250d-7843-49e1-b863-ab4781c57eb2%2Fqzu2mt9_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
O $1,000.
O $10,000.
$12,000.
O $21,000.
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