Use the Following to Answer Questions

question 257

Multiple Choice

Use the following to answer questions:
Figure: Kristin's Budget Line
-(Figure: Kristin's Budget Line) Look at the figure Kristin's Budget Line. The price of a cup of cappuccino is $3, and the price of an apple is $1. Given her income and the prices of the two goods, Kristin can consume _____ cappuccinos and _____ apples.

• A) 20; 10
• B) 15; 15
• C) 15; 20
• D) 10; 40

---

Definitions:

Revenue

The complete sum of earnings derived from selling goods or offering services that are central to a company's core business.

Net Sales

The total revenue from sales less returns, allowances, and discounts.

Cost of Goods Sold

The straightforward costs related to the production of goods a company distributes, encompassing materials and labor expenses.

Gross Profit

The financial measure representing the difference between sales revenue and the cost of goods sold, indicating the efficiency of a company in managing its labor and supplies in production.