An income statement for Sam's Bookstore for the first quarter of the year is presented below: On average, a book sells for $50. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed.The cost formula for selling and administrative expenses with "X" equal to the number of books sold is:

A) Y = $102,000 + $5X
B) Y = $102,000 + $7X
C) Y = $78,000 + $7X
D) Y = $78,000 + $9X

In pure competition, resources are optimally or efficiently allocated when production occurs at the output level where P = MC.

Hair Stylist Woes.Maryann went to see her hair stylist,Candy.Maryann,who had black,curly hair,requested straight,blond hair.Candy told her that she could make that change,but there would be significant upkeep involved.Candy made the change,but Maryann did not do the upkeep required.She also falsely claimed that Candy did not do what Maryann asked her to do,that Candy lied to her,and that Candy was professionally incompetent.Maryann made the statements to friends of hers.She also wrote an editorial in her college newspaper to the effect that Candy's shop should be avoided at all costs because Candy was incompetent.In fact,Candy was a good hair stylist and enjoyed a good reputation up until the time that Maryann started her criticism.Candy threatened to sue Maryann for defamation,but Maryann told Candy that Candy could not prevail because Candy could not prove loss of income.Candy had to admit that while her reputation had been damaged somewhat,the damage was primarily among the college population.Her income kept increasing from other segments of the community,and she had suffered no net loss.Statements made by Maryann to her friends that were defamatory of Candy are what type of defamation?

A) Libel.
B) Slander.
C) Both libel and slander.
D) Neither libel nor slander because an editorial was involved.
E) Neither libel nor slander because the falsehood involved matters of appearance not business-related matters.

Cost-volume-profit analysis can be used to compute expected income from predicted sales and cost levels.

Answer the question on the basis of the following table showing the demand schedule facing a nondiscriminating monopolist: $\begin{array}{ccc}P& & Q_d\\ \$10& & 1\\ 7& & 2\\ 5& & 3\\ 3& & 4\\ 1& & 5\end{array}$ Refer to the table.Assume that this monopolist faces zero production costs.The profit-maximizing monopolist will set a price of:

A) $10.
B) $7.
C) $5.
D) $3.

(Last Word) In 2005,chief executive officers' (CEOs') pay at U.S.firms with around $500 million in annual sales averaged:

A) $600 thousand.
B) $1.2 million.
C) $2.2 million.
D) $4.5 million.