A Department Store Bought Hand Lotion in 4-Quart Containers and Then

question 32

Multiple Choice

A department store bought hand lotion in 4-quart containers and then repackaged the lotion in 16-fluid-ounce bottles. The lotion and bottles cost $27.54, and each 16-fluid-ounce bottle was sold for $6.75. How much profit was made on each 4-quart container of lotion?

• A) $6.61
• B) $13.23
• C) $26.46
• D) $6.75
• E) $20.79

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Definitions:

MR

Marginal Revenue, the change in total revenue that results from selling one additional unit of a product or service.

MC

The additional cost of producing one more unit of a product or service, known as marginal cost.

Substitute Brands

Brands that offer products or services which consumers may use in place of each other based on preference, price, or availability.

Increase Profits

Strategies or actions taken by a business to boost its earnings above its expenses.