You Have $1 to Spend on a Vending Machine Snack

question 153

Multiple Choice

You have $1 to spend on a vending machine snack.A bag of chips will cost you $1 and a candy bar will also cost you $1.If you choose the bag of chips,the opportunity cost of buying the chips is:

• A)$1 plus the enjoyment you would have received from the candy bar.
• B)$2 minus the enjoyment you received from the bag of chips.
• C)$1.
• D)the enjoyment you would have received from the candy bar.

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Definitions:

Digital Camera

A camera that captures photographs in digital format, allowing for immediate viewing, deletion, or storage.

Dollar Sales

The total value of goods or services sold, measured in dollars, within a specific period of time.

Target Profit

The desired net income a company aims to achieve within a specific period.

Contribution Margin Ratio

The contribution margin ratio is the percentage of each sales dollar remaining after deducting variable expenses, indicating how much of each dollar contributes to fixed expenses and profit.