A Portrait Photographer Produces Output in Packages of 100 Photos

question 31

Multiple Choice

A portrait photographer produces output in packages of 100 photos each. If the output sold increases from 600 to 700 photos, total revenue increases from $1,200 to $1,400. The marginal revenue per photo is:

• A) $200.
• B) $100.
• C) $20.
• D) $2.

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Definitions:

Sales Revenue

The total amount earned by a company from its sales of goods or services, before any deductions for returned goods and allowances.

Gross Profit Rate

A financial ratio that compares gross profit to net sales, indicating the efficiency of production and pricing.

Operating Expenses

Expenses incurred from normal business operations such as manufacturing costs, marketing fees, and office supplies.

Sales Revenue

Income generated from selling goods or services over a period, critical for determining a company's profitability.