A Business Produces 400 Items and Sells Them for $15

question 107

Multiple Choice

A business produces 400 items and sells them for $15 each for a total of $6,000. The total cost of producing the items is $4,500 in explicit cost and $1,000 in implicit cost. Economic profit is:

• A) $0.
• B) $500.
• C) $1,000.
• D) $1,500.

Identify gender egalitarianism and its impact on society and organizations.

Understand the significance of leadership adaptability across different cultural contexts.

Understand the concept and calculation of Net Liquid Balance (NLB) in a company.

Acquire knowledge about different bankruptcy processes and their implications.

---

Definitions:

Accounts Payable

the amount a company owes to suppliers or creditors for goods and services bought on credit.

Inventory Decrease

A reduction in the quantity or value of inventory held by a business over a specific period.

Cash Payments

Transactions involving the transfer of cash from one entity to another, usually as exchanges for goods, services, or to settle debts.

Purchases

Transactions involving the buying of goods or services for the purpose of resale or direct use in production or operations.