Table 16-2 Neem Products Sells Its Ayurvedic Neem Toothpaste in Two Completely

question 250

Multiple Choice

Table 16-2

Neem Products sells its Ayurvedic Neem toothpaste in two completely isolated markets with demand schedules as shown in Table 16-2. The average cost of production is constant at $2 per tube.
-Refer to Table 16-2.What are the total profits from both markets combined?

• A)$50
• B)$48
• C)$18
• D)$15

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Definitions:

Profit Center

A part of an organization that is directly responsible for generating its own revenue and profits.

Fixed Assets

Long-term tangible assets, such as buildings, machinery, and equipment, used in operating a business and not expected to be converted to cash in the current or next fiscal year.

Yearly Income

The total amount of income generated by a person or entity in one fiscal year.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit from an investment by the original capital cost.