Use the Table Below to Answer the Following Question(s) -Calculate the Total Revenue When the Quantity Produced Is 55,000

question 6

Multiple Choice

Use the table below to answer the following question(s) .
In the spreadsheet below, there is data on the price, cost, demand, and quantity produced for an item. There are also different "what if" values that can help a manager to calculate costs and revenue with variability in demand. $\begin{array}{|l|l|l|l|}\hline & \text { A } & \text { B } & \text { C } \\\hline 1 & \text { Profit Model } & & \\\hline 2 & & & \\\hline 3 & \text { Data } && \begin{array}{l}\text { What-If } \text { Demand } \\\text { Values }\end{array} \\\hline 4 & & & 20,000 \\\hline 5 & \text { Unit Price (\$) } & 50 & 40,000 \\\hline 6 & \text { Unit Cost (\$) } & 25 & 55,000 \\\hline 7 & \text { Fixed Cost (\$) } & 550,000 & 60,000 \\\hline 8 & \text { Demand } & 60,000 & 65,000 \\\hline 9 & \text { Quantity Produced } & 55,000 & \\\hline 10 & & & \\\hline\end{array}$
-Calculate the total revenue when the quantity produced is 55,000 and demand is 60,000.

• A) $1,375,000
• B) ($1,320,000)
• C) $1,430,000
• D) $2,750,000

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Definitions:

Acquire Goods

The process of obtaining products or commodities through purchase, trade, or other means.

Services

Useful functions, acts, or performances provided by one party to another, often in exchange for payment.

One Buyer

One buyer refers to a market situation where a single customer or entity has significant buying power or is the sole purchaser of a product or service.

Product

An item or service created through a process and offered for sale to satisfy wants or needs of consumers.