Using the Following Information to Complete Questions 8 - 11

question 5

Multiple Choice

Using the following information to complete questions 8 - 11.
Top-It-Off Inc. produces gold pen and pencil sets for executives' desks. Revenue and labor productivity data are given in the following table. The components cost $15.00. The wage rate is constant at $7.50 per hour.
-Given the above information, how much output should the firm produce and at what price?

• A) Q = 85, P = 20
• B) Q = 85, P = 45
• C) Q = 75, P = 45
• D) Q = 75, P = 60
• E) None of the Above

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Definitions:

Credit Sales

Transactions where goods or services are provided to a customer with an agreement to pay at a later date.

Cash Sales

Transactions in which goods or services are paid for with cash at the time of the sale.

Sales on Account

Transactions where the customer purchases goods or services on credit and promises to pay the seller at a later date.

Merchandise

Goods or commodities that a business purchases or manufactures for sale to customers.