The Profit (P) Realized by a Company Varies Directly as the Number

question 45

Multiple Choice

The profit (P) realized by a company varies directly as the number of products it sells (s) . If a company makes a profit of $7600 on the sale of 400 products, what is the profit when the company sells 8000 products?

• A) $380,000
• B) $421,000
• C) $160,000
• D) $152,000
• E) $155,500

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Definitions:

Specific Risk

Risk associated with individual investments or a small group of assets, distinct from market risk.

Two-factor Model

A Two-factor Model in finance is an asset pricing model that uses two variables to calculate the value of an asset or the expected return.

Commodity Prices

The market prices for raw materials or primary agricultural products.

Market Risk

The risk of losses in investments due to factors that affect the entire market or economy.