Table 4-1 -Refer to Table 4-1.The Table Above Lists the Highest Prices

question 18

Multiple Choice

Table 4-1

-Refer to Table 4-1.The table above lists the highest prices three consumers, Tom, Dick, and Harriet, are willing to pay for a short-sleeved polo shirt.If the price of the shirts falls from $28 to $20,

• A)consumer surplus increases from $14 to $35.
• B)Tom will buy two shirts; Dick and Harriet will each buy one shirt.
• C)consumer surplus will increase from $70 to $95.
• D)Harriet will receive more consumer surplus than Tom or Dick.

Appreciate the importance of communication skills in the modern workforce.

Recognize the benefits of a diverse work environment and how to contribute positively to it.

Understand the principles of job order cost accounting and its application in manufacturing and service environments.

Learn how to calculate and analyze the cost of goods manufactured, cost of goods sold, and inventory valuation using job order cost accounting.

---

Definitions:

Risk Adjusted Discount Rate

A rate used in capital budgeting that adjusts for the risk of cash flows, providing a way to account for the riskiness of the project.

NPV

Net Present Value (NPV) is a financial metric used to assess the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period of time.

IRR

The Internal Rate of Return is a financial measurement employed to gauge the potential profit of investments.

Flexibility Option

An investment option that provides the holder with the ability to respond to changes in the financial market or business environment.