If the Demand for Oranges Is Written as Q =

question 107

Multiple Choice

If the demand for oranges is written as Q = 100 - 5p,then the inverse demand function is

• A) Q = 5p - 100.
• B) Q = 20 - .2p.
• C) p = 20 - 5Q.
• D) p = 20 - .2Q.

---

Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, showing the revenue available to cover fixed expenses and provide profit.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, demonstrating the effect of fixed costs on profits.

Contribution Margin

The difference between the sales price of a product and its variable costs, used to cover fixed costs and profit.

Sales Mix

The composition of different products or services sold by a company, which can significantly impact profitability based on the varying margins of each item.