Figure 13-7 -Suppose You Are the Owner of a Picture Frame Store.Assume

question 192

Multiple Choice

Figure 13-7

-Suppose you are the owner of a picture frame store.Assume that the average price customers are willing to pay for each picture frame is $120.Also,suppose your fixed costs (FC) total $32,000 (real estate taxes,interest on a bank loan,etc. ) and unit variable cost (UVC) for a picture frame is $40 (labor,glass,frame,and matting) .According to Figure 13-7 above,how much profit will your picture frame store make if it sells 400 picture frames?

• A)$48,000
• B)$32,000
• C)$16,000
• D)$0
• E)($32,000)