The Reliable Auto Repair Shop Is Earning a Total Revenue

question 4

Multiple Choice

The Reliable Auto Repair Shop is earning a total revenue of $7,000. Its total fixed costs are $700, and its total variable costs are $2,500. The Reliable Auto Repair Shopʹs profit is

• A) -$1,800.
• B) $3,800.
• C) $4,500.
• D) $6,300.

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Definitions:

Oral Modification

An agreement to change the terms of a contract using spoken words rather than written documentation.

Unconscionable

A term describing a contract or practice that is unjust or extremely one-sided in favor of the party who has the superior bargaining power.

Definition

A precise explanation of the meaning of a word or phrase, often distinguishing it from similar concepts.

Merchant

A person or company involved in wholesale trade, especially one dealing with foreign countries or supplying goods to a particular trade.