Refer to the Following Table to Answer the Following Questions

question 22

Multiple Choice

Refer to the following table to answer the following questions:

-Kenneth is the only provider of bottled water for three cities.Because he has access to a natural spring,the marginal cost to produce an additional bottle is $0.If he could price discriminate by charging a different price in each city,how many more people would have access to bottled water compared to when he charges only one price for all three cities?

• A) one more person
• B) two more people
• C) three more people
• D) four more people
• E) exactly the same number of people

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Definitions:

Schedule of Cost of Goods Manufactured

A detailed report showing the total production costs incurred by a company to produce goods during a specific period.

Cost of Goods Sold

The expenses directly associated with manufacturing the products that a company sells.

Direct Materials

Components that are a fundamental part of the finished product, directly associated with its manufacturing process.

Total Manufacturing Costs

Total manufacturing costs include all expenses directly related to the production of goods, including raw materials, labor, and manufacturing overhead.