Table 11-1 -Refer to Figure 11-1

question 130

Multiple Choice

Table 11-1
$$\begin{array} { | c | c | c | } \hline \text { Quantity } & \begin{array} { c } \text { Price } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Total Revenue } \\\text { (dollars) }\end{array} \\\hline 1 & \$ 7.50 & \$ 7.50 \\\hline 2 & 7.00 & 14.00 \\\hline 3 & 6.50 & 19.50 \\\hline 4 & 6.00 & 24.00 \\\hline 5 & 5.50 & 27.50 \\\hline 6 & 5.00 & 30.00 \\\hline\end{array}$$
-Refer to Figure 11-1.The marginal revenue from the increase in price from P? to P? equals

• A)the area A.
• B)the area (B + D - A).
• C)the area (A - D).
• D)the area (C - B).

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Definitions:

Sales Revenue

The gross revenue is the entirety of income that comes from selling products or services, prior to deducting any costs.

Total Invested Capital

The sum of a company's equity and debt capital, representing the total amount of capital invested in the business.

Profit Margin

A financial performance ratio that shows the percentage of profit a company makes for each dollar of sales.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.