# Practice Test 2.2.pdf - PRINTABLE VERSION Practice Test 2...

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Practice Test 2.2.pdf

Question 1   Your answer is CORRECT . Suppose you buy a piece of office equipment for \$ 11,000.00 . After 6 years you sell it for a scrap value of \$ 4,000.00 . The equipment is depreciated linearly over 6 years . The value of the piece of equipment after 2 years is ( rounded to the nearest whole dollar )
a) \$ 4,000.00
b) \$ 9,000.00
c ) \$ 9,727.00
d) \$ 10,417.00
e) \$ 8,667.00
f) None of the above .
Question 2   Your answer is CORRECT . A manufacturer has a monthly fixed cost of \$ 60,000.00 and a production cost of \$ 7 for each unit produced . The product sells for \$ 19 per unit . The cost function for this situation is
Question 3   Your answer is CORRECT . A company has fixed monthly expenses of \$ 120,000.00 and production costs of \$ 18 per unit produced . They sell their product for \$ 27 . What is their profit on the production and sale of 16,000 units ?