Fill in the Columns in the Following Table and Use

question 168

Essay

Fill in the columns in the following table and use the values in the table to determine the profit-maximizing level of output.
$\begin{array}{|c|c|c|c|c|c|}\hline \text { Quantity } & \begin{array}{c}\text { Total } \\\text { Revenue } \\(T R)\end{array} & \begin{array}{c}\text { Total } \\\text { Cost } \\(T C)\end{array} & \text { Profit } & \begin{array}{c}\text { Marginal } \\\text { Revenue } \\(M R)\end{array} & \begin{array}{c}\text { Marginal } \\\text { Cost }(M C)\end{array} \\\hline 0 & 0 & 3 & & & \\\hline 1 & 5 & 5 & & & \\\hline 2 & 10 & 6 & & & \\\hline 3 & 15 & 8 & & & \\\hline 4 & 20 & 11 & & & \\\hline 5 & 25 & 15 & & & \\\hline 6 & 30 & 21 & & & \\\hline 7 & 35 & 30 & & & \\\hline 8 & 40 & 42 & & & \\\hline 9 & 45 & 60 & & & \\\hline 10 & 50 & 85 & & & \\\hline\end{array}$

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Definitions:

Vertical Analysis

A technique for analyzing financial statements where every item in the three primary account categories (assets, liabilities, and equity) on a balance sheet is expressed as a percentage of the overall account.

Ratio

A quantitative relationship between two numbers, showing how many times the first number contains the second or is contained within it.

Earnings Per Share

Earnings per share (EPS) is a financial ratio that divides the net earnings available to common shareholders by the average outstanding shares, indicating how much money shareholders would receive for every share owned.

Income Before Interest

Profits calculated after all expenses except interest expenses have been deducted from revenues.