Profit Per Unit Is Equal to

question 95

Multiple Choice

Profit per unit is equal to

• A)Price divided by average total cost.
• B)Price minus average total cost.
• C)Total revenue minus total cost.
• D)Total revenue minus variable cost divided by quantity.

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Definitions:

Marginal Tax Rate

The rate of tax applied to the next dollar of taxable income.

Pre-tax Cost

The expense or cost incurred by a corporation before the deduction of tax liabilities.

Pay Interest

The act of compensating lenders or depositors for the use of their money, typically expressed as an annual percentage of the principal.

Face Value

The original value or nominal value of a security as stated by the issuer, often used in the context of bonds or other fixed-income securities.