Nottingham News Company has the rights to sell and deliver the city newspaper in a
designated area in the country. Amonthly subscription sells for $30.00 and Noitingham News
pays $10.00 per month for each newspaper subscription. In addition to this variable cost,
Nottingham News has fixed costs of $3,000 per month. Nottingham News currently activity
level is 700 subscriptions.

The basic accounting equation is,

We can expand this in to,

We can further expand this as,

Explanation:

initially, since we consider the business as a separate entity from the owner, the assets of the business are equal to the amount the owner contributes.

then when the company can no longer grow only with equity, we take loans from third parties, and assets equals liabilities and equity.

then with business operations, revenues comes in and costs go out, the net result, profit or loss either increase the equity or decrease the equity.

the answer to this question would be shared investment

okay lol !