(Table: Variable Costs for Lots) Look at the Table Variable

question 23

Essay

(Table: Variable Costs for Lots) Look at the table Variable Costs for Lots.During the winter, Alexa runs a snow-clearing service, and snow clearing is a perfectly competitive industry.The table provided shows her variable costs for snow clearing and number of lots cleared.Her only fixed cost is $1,000 for a snowplow.Her variable costs include fuel, her time, and hot coffee.If the price to clear a lot is $30, what is Alexa's profit or loss per unit at the optimal output?
A.-$13.75
B.$720
C.$0
D.-$12.25

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Definitions:

Financial Evaluation

The process of assessing the viability, stability, and profitability of a project or business through analyzing financial statements and other key financial indicators.

Uncertainty

The state of having insufficient knowledge about present conditions or future events, impacting decision-making and planning.

Net Present Value

A financial calculation that compares the value of money received in the future to an amount of money received today, taking the time value of money into account.

Cash Stream

A cash stream represents the flow of cash in and out of a business, highlighting cash revenue from sales and cash expenses from operations.