Refer to the Graph Shown

question 145

Multiple Choice

Refer to the graph shown. The market represented here is in equilibrium when the price is:

• A) $5.00 per unit and 220 units are bought and sold.
• B) $8.15 per unit and 220 units are bought and sold.
• C) $5.00 per unit and 400 units are bought and sold.
• D) $3.65 per unit and 400 units are bought and sold.

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Definitions:

Sales Budget

An estimate of the expected sales revenue for a period, which serves as a foundation for a company's production and marketing planning.

Master Budget

An inclusive financial planning document that consolidates all individual budgets related to sales, cost of goods sold, operations, overheads, and capital expenditures.

Credit Sales

Sales made by a business where payment is delayed as per agreed terms with the buyer.

Cash Collections

The process of receiving cash payments from customers, typically for goods sold or services rendered.