The Following Table Summarizes Six Potential Customers' Ages and Willingness

question 42

Multiple Choice

The following table summarizes six potential customers' ages and willingness to pay for a solo skydiving experience from SkyMasters.The aircraft has room for eight people,including the pilot and skydiving instructor.The marginal cost of adding each additional passenger is $100.SkyMasters holds significant market power for its region.
Use this information to answer the following questions:

-If SkyMasters could charge two different prices based on the age of the customer,what would those prices be?

• A) $300 and $200
• B) $350 and $200
• C) $400 and $150
• D) $400 and $200
• E) $250 and $100

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Definitions:

Inventory Destroyed

Goods that have been damaged or ruined to such an extent that they cannot be sold or used.

Gross Profit Ratio

A profitability ratio calculated as gross profit divided by net sales, indicating the percentage of sales revenue that exceeds the cost of goods sold.

Average Cost

A method for inventory valuation that calculates the cost of goods sold and ending inventory based on the average cost of all items purchased.

Retail Inventory Method

An accounting process used by retailers to estimate inventory value by converting the retail value of inventory to a cost basis, based on the relationship between cost and retail price.