Tony Runs Read Economic Reports

question 269

Multiple Choice

Tony runs Read Economic Reports. If Tony finds that the cost of completing an additional report is $100 and someone offers him $125 to complete this additional report, Tony should:

• A) not complete the additional report, since he will incur a loss.
• B) complete the additional report but make the person buy two reports.
• C) complete the additional report.
• D) not complete the additional report, since his additional cost is more than his additional revenue.

---

Definitions:

Unit Product Costs

The cost assigned to a single unit of product, encompassing direct materials, labor, and overhead.

Markup

The difference between the cost of a good or service and its selling price, expressed as a percentage of the cost.

Selling Price

The amount a buyer pays to purchase a product or service from a seller.

Total Job Cost

The sum of all costs assigned to a specific job or project, including direct materials, direct labor, and applied manufacturing overhead.