A Cement Manufacturer Has Supplied the Following Data: If

question 202

Multiple Choice

A cement manufacturer has supplied the following data: If the company increases its unit sales volume by 4% without increasing its fixed expenses, then total net operating income should be closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $12,240
• B) $318,240
• C) $360,400
• D) $311,973

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Definitions:

Diminishing Returns

Diminishing returns, a concept in economics, occurs when adding an additional factor of production results in a lower increment of output, assuming other factors are constant.

Total Cost

The entire expense of production, incorporating both consistent and fluctuating costs.

Produce

Refers to agricultural products, especially fresh fruits and vegetables, created through farming.

Utility

Utility is a measure of satisfaction or happiness that consumers derive from consuming goods and services.