Table 27 Table 2

question 53

Multiple Choice

Table 2.7 Table 2.7 shows the output per day of two pet groomers, Tammi and Horace.They can either devote their time to grooming dogs or bathing cats.
-Refer to Table 2.7.What is Tammi's opportunity cost of grooming a dog?

• A)Half a bathed cat
• B)Two bathed cats
• C)Two-thirds of a bathed cat
• D)One and a half bathed cats

---

Definitions:

Total Revenue

The overall amount of income generated by a business from its activities, such as sales of goods or services, before deducting expenses.

Total Variable Cost

The sum of all costs that vary directly with the level of production or output, such as raw materials and direct labor expenses.

Operating Leverage

A measure of how revenue growth translates into growth in operating income due to fixed versus variable costs.

Profit And Loss Statement

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, reflecting the company's profit or loss.