True Value Hardware Buys 200 Snow Blowers for $90 Each

question 24

Multiple Choice

True Value Hardware buys 200 snow blowers for $90 each to stock the store for the winter. If True Value sells the 200 snow blowers at $120 each, what is the profit? (sales - cost)

• A) $60,000
• B) $6,000
• C) $24,000
• D) $18,000
• E) None of these

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Definitions:

Utility Level

A gauge of the pleasure or fulfillment obtained by a customer through the use of goods and services.

Consumer Satisfaction

Consumer satisfaction measures how products or services provided by a company meet or surpass a customer's expectation.

Necessities

Basic needs or essential items required for living and maintaining a good life.

Chain-Weighted Price Index

Cost-of-living index that accounts for changes in quantities of goods and services.