Flower Company, Which Is Operating at Capacity, Desires to Add

question 53

Multiple Choice

Flower Company, which is operating at capacity, desires to add a new service to its rapidly expanding business. The service should be added as long as service revenues exceed:

• A)variable costs.
• B)fixed costs.
• C)the sum of variable costs and fixed costs.
• D)the sum of variable costs and any related opportunity costs.
• E)the sum of variable costs, fixed costs, and any related opportunity costs.

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Definitions:

Moral Guardian

An individual or entity that promotes and enforces traditional ethical standards and values within a community or society.

Freud

Sigmund Freud, an Austrian neurologist who founded psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Reality Principle

Principle by which the ego functions; the satisfaction of the demands of the id only when negative consequences will not result.

Immediate Gratification

The desire to experience pleasure or fulfillment without delay or deferment, often prioritized over long-term gain.