You Can Sell 60 Pet Chias Per Week If They

question 118

Multiple Choice

You can sell 60 pet chias per week if they are marked as $1 each,but only 50 per week if they are marked $2 per chia. Your chia supplier is prepared to sell you 10 chias per week if they are marked $1 per chia, and 20 per week if they are marked $2 per chia. At what price should the chias be marked so that there is neither surplus nor a shortage of chias ?

• A)$3.50
• B) $3.64
• C) $2.25
• D) $3.55
• E) $4.50

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Definitions:

Present Value

The immediate value of a prospective sum of money or stream of cash flows, using a specific interest rate for calculation.

Equivalent

A term expressing a state of equality or equivalency in value, function, or meaning.

Cash Held

Physical money held by a business in its cash registers or cash box, used for daily operations.

Present Value

The present-day valuation of coming monetary sums or cash flow sequences, upon applying a defined rate of return.