Company a Manufactures a Single Automotive Component

question 57

Multiple Choice

Company A manufactures a single automotive component.It had total revenue of $100,000 and an economic profit of $20,000.What is the price of the component it manufactures?

• A)($100,000/quantity sold).
• B)($100,000/quantity produced).
• C)($100,000/quantity sold) − average cost of the product.
• D)($100,000/quantity produced) − average cost of the product.

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Definitions:

Supplies

Materials, goods, or inventory required for the operation of a business or execution of a task or project.

Quantities

A measurement or amount of a specific item or variable.