Sugar Corp

question 88

Multiple Choice

Sugar Corp.has a selling price of $20,variable costs of $12 per unit,and fixed costs of $25,000.Maple expects profit of $300,000 at its anticipated level of production.If Sugar sells 5,000 units more than expected,how much higher will its profits be?

• A)$40,000
• B)$100,000
• C)$60,000
• D)$300,000

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Definitions:

Western Capitalism

A socio-economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods determined primarily by competition in a free market.

Natural Resources

Materials and components found in nature that can be used for economic gain or necessary for life, such as water, timber, and minerals.

Powerful Nations

Countries that possess significant political, economic, and military influence on a global scale.

Stratification

The hierarchical arrangement of individuals in a society based on factors like wealth, income, race, education, and power.