Use the Table Below to Answer the Following Question(s) -From the "What If" Values, Calculate the Revenue If the the Spreadsheet

question 65

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. $\begin{array}{|l|l|l|l|}\hline & \text { A } & \text { B } & \text { C } \\\hline 1 & \text { Profit Model } & & \\\hline 2 & & & \\\hline 3 & \text { Data } && \begin{array}{l}\text { What-If } \text { Demand } \\\text { Values }\end{array} \\\hline 4 & & & 20,000 \\\hline 5 & \text { Unit Price (\$) } & 50 & 40,000 \\\hline 6 & \text { Unit Cost (\$) } & 25 & 55,000 \\\hline 7 & \text { Fixed Cost (\$) } & 550,000 & 60,000 \\\hline 8 & \text { Demand } & 60,000 & 65,000 \\\hline 9 & \text { Quantity Produced } & 55,000 & \\\hline 10 & & & \\\hline\end{array}$
-From the "what if" values, calculate the revenue if the demand is 60,000 units.

• A) $2,750,000
• B) $825,000
• C) $75,000
• D) $1,375,000

---

Definitions:

Bank Reserves

Bank reserves are the amount of cash that banks must hold either in their vaults or on deposit with a central bank, used to back deposits and ensure liquidity.

Money Supply

The sum of all financial assets that are readily available in an economy at a given moment, including cash on hand, deposits in banks, and other easily convertible assets.

Recession 1981-1982

The recession of 1981-1982 was a severe global economic downturn characterized by high inflation, interest rates, and unemployment, particularly impacting the United States.

Interest Rates

The cost of borrowing money or the return for investing money, typically expressed as a percentage of the principal amount.