In Longolia,beer Drinking Is Associated with Blood Types

question 81

Multiple Choice

In Longolia,beer drinking is associated with blood types.The demand for beer of the three major blood groups is shown below:

-Refer to the above information to answer this question.If the beer producers charged the same price to all consumers,in order to maximize total revenue what would that price be?

• A)$5.00.
• B)$4.50.
• C)$4.00.
• D)$3.50.
• E)$3.00.

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Definitions:

Job-Order Costing System

A cost accounting system that assigns costs to specific batches or job orders, making it easier to track the cost of producing each item or batch.

Overapplied

Occurs when the allocated manufacturing costs exceed the actual manufacturing costs incurred.

Underapplied

Refers to a situation where the allocated or applied costs in an accounting period are less than the actual costs incurred.

Cost of Goods Sold

Represents the total expense incurred from creating or acquiring the goods that a business sells during a period, crucial for evaluating profitability.