Bridget Wants to Buy Some English Tea Priced at 10

question 105

Multiple Choice

Bridget wants to buy some English tea priced at 10 pounds from an online seller.The current exchange rate is 1.5 dollars to the pound.How much she will pay for the tea (excluding any upfront exchange fees) ?

• A) $15.00
• B) $12.50
• C) $11.50
• D) $8.50
• E) $6.67

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Definitions:

Variable Costs

Charges that fluctuate according to the degree of business operations.

Cost-volume-profit Graph

A graphical representation that shows the relationship between a company's costs, its sales volume, and its profits, used for planning and decision-making.

CVP Graph

A visual representation of the Cost-Volume-Profit analysis, illustrating the relationship between costs (both variable and fixed), volume of production, and the resulting profit or loss.

Management

The process of dealing with or controlling things or people within an organization.