A Toothbrush That Costs Ten Cents to Manufacture May Cost

question 72

Multiple Choice

A toothbrush that costs ten cents to manufacture may cost a consumer $3.00 to buy. According to critics, this is an example of ________.

• A) deceptive advertising
• B) redlining
• C) excessive markup
• D) high-pressure selling
• E) shoddy manufacturing

---

Definitions:

Unit Variable Cost

The cost associated with producing one additional unit of a product, including materials, labor, and other variable expenses.

Sales Volume

Sales volume refers to the number of units of a product sold over a specific period, serving as a measure of business activity and market demand for the product.

Unit Price

The cost of a single item or unit of measure for goods or services, facilitating comparison of costs among similar items.

Fixed Costs

Costs that do not change with the level of production or sales activity, such as rent or salaries.