Cost and Revenue Functions for a Certain Chemical Manufacturer Are

question 13

Multiple Choice

Cost and revenue functions for a certain chemical manufacturer are given in the following figure. How much does it cost to produce 10 tons?

• A)$4,500
• B)$3,200
• C)$4.50
• D)$3.20

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Definitions:

Cash Cycle

The period between the outlay of cash for the purchase of inventory and the collection of cash from customers in a business operation, reflecting the liquidity and efficiency of the company.

Cash Cycle

The duration between the outlay of cash to produce goods or services and the collection of cash from sales.

Inventory Period

The average time that goods remain in inventory before being sold, a measure of inventory management efficiency.

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories, and meeting short-term liabilities.