The Jeans Store Sells 7 Pairs of Jeans Per Day

question 11

Multiple Choice

The Jeans Store sells 7 pairs of jeans per day when it charges $100 per pair.It sells 8 pairs of jeans per day at a price of $90 per pair.The marginal revenue of the eighth pair of jeans is

• A)$20.
• B)$90.
• C)$100.
• D)$700.

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Definitions:

Tenant-Days

A measure used in the hospitality or rental industry, representing the total number of days that tenants occupy a space.

Facility Expenses

Costs associated with the physical locations where businesses operate, such as rent, utilities, maintenance, and security.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, providing a more accurate comparison between actual and budgeted performance.

Spending Variance

The difference between the budgeted amount of expense or cost and the actual amount spent.