The Figure Shows the Graphs of the Cost and Revenue

question 63

Multiple Choice

The figure shows the graphs of the cost and revenue functions for a company that manufactures and sells binoculars. Use the information in the figure to answer the question.

-Is there a profit when 966 binoculars are produced?

• A) Yes
• B) No

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Definitions:

Shareholders

Persons or organizations that possess stock in a corporation, thus holding a stake in the business.

Double Entry System

A method of bookkeeping where every entry to an account requires a corresponding and opposite entry to a different account, effectively balancing the accounting equation.

Accounting

A structured process of noting down, disclosing, and analyzing the financial activities of a business entity.

Income Statement

A financial document that shows a company's revenues, expenses, and net income over a specific period, typically a quarter or year.