Slick Shades Has a Constant Marginal Cost of Production Equal

question 32

Multiple Choice

Slick Shades has a constant marginal cost of production equal to $80 and the distributors have a constant marginal cost of distribution equal to $30. If Slick Shades is producing the profit- maximizing number of sunglasses (in hundreds) and charging the profit- maximizing wholesale price, what is the retail price?

• A)$160
• B)$180
• C)$170
• D)$200

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Definitions:

Financial Ratios

Metrics derived from financial statement analysis used by investors and analysts to evaluate a company's financial health and performance.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, leading to the liquidation or reorganization of assets under the law.

Operating Cash Flows

This represents the cash generated from a company's normal business operations, highlighting the company's ability to generate sufficient revenue to maintain and grow its operations.

Receivables

Money owed to a company by its customers or other parties for goods and services provided on credit.