Figure 11-7 -Suppose You Are the Owner of a Picture Frame Store

question 278

Multiple Choice

Figure 11-7
-Suppose you are the owner of a picture frame store. Assume that the average price customers are willing to pay for each picture frame is $120. Also, suppose your fixed costs (FC) total $32,000 (real estate taxes, interest on a bank loan, etc.) and unit variable cost (UVC) for a picture frame is $40 (labor, glass, frame, and matting) . According to Figure 11-7a above, how much profit will your picture frame store make if it sells 400 picture frames?

• A) $48,000
• B) $32,000
• C) $16,000
• D) $0
• E) $64,000

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Definitions:

Pulmonary Blood Flow

The circulation of blood from the heart to the lungs and back, for the purpose of gas exchange.

Tricuspid Atresia

A congenital heart defect where the tricuspid valve between the right atrium and right ventricle fails to develop.

Apical Pulse

The heart rate as measured at the apex of the heart, typically done with a stethoscope.