Two Firms, C and D, Both Produce Coat Hangers

question 80

Multiple Choice

Two firms, C and D, both produce coat hangers. The price of coat hangers is $1.20 each. Firm C has total fixed costs of $750,000 and variable costs of 30¢ per coat hanger. Firm D has total fixed costs of $400,000 and variable costs of 50¢ per coat hanger. The corporate tax rate is 40%. If the economy is strong, each firm will sell 2,000,000 coat hangers. If the economy enters a recession, each firm will sell 1,400,000 coat hangers. If the economy is strong, the before-tax profit of firm C will be

• A) $1,680,000.
• B) $1,050,000.
• C) $510,000.
• D) $204,000.

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Definitions:

Documenting Data

The process of recording information accurately and systematically for future reference or analysis, often used in healthcare to maintain patient records.

Vital Signs

Measurements of the body's most basic functions, including temperature, pulse, respiration rate, and blood pressure, often used to assess general health and detect possible medical conditions.

Systematic Observations

An organized method of monitoring, recording, and analyzing occurrences in a structured manner to gather reliable data.

Patient Interactions

Exchanges or engagements between healthcare providers and patients for the purpose of providing or receiving healthcare services.