Suppose That Profit for a Particular Product Is Calculated Using

question 24

Multiple Choice

Suppose that profit for a particular product is calculated using the linear equation: Profit = 20S + 3D. Which of the following combinations of S and D would yield a maximum profit? ​

• A)S = 0, D = 0
• B)S = 405, D = 0
• C)S = 0, D = 299
• D)S = 182, D = 145

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Definitions:

Circulating Security Interest

A floating charge over all of a company.

Floating Charge

A security interest over a fluctuating pool of assets, such as inventory or receivables, which allows the borrower to use the assets in the course of business.

Liquidator

A person or entity appointed to wind up the affairs of a company and dispose of its assets in the event of its liquidation.

Winding Up

The process of concluding a company's affairs, settling its liabilities, and distributing the remaining assets to the shareholders or owners.