Moss Company Charges Cost Plus 35

question 102

Multiple Choice

Moss Company charges cost plus 35%. What is the price of an item with cost equal to $65?

• A) $73.25
• B) $95.80
• C) $87.75
• D) $65.50
• E) $22.75

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Definitions:

Diminishing Returns

A principle stating that after a certain point, additional investment or effort yields progressively smaller increases in output.

Marginal-cost Curve

The marginal-cost curve represents how the cost of producing one additional unit of a good changes as its production volume varies.

Marginal Product

The additional output that is generated by employing one more unit of a specific input, ceteris paribus.

Total Fixed Cost

The sum of all expenses that remain constant regardless of the level of production or output within a business.