Please Refer to the Following Trend Analysis of Pathways Company

question 57

Multiple Choice

Please refer to the following trend analysis of Pathways Company:
$$\begin{array} { | l | r | r | r | r | r | r | } \hline & 2015 & 2014 & 2013 & 2012 & 2011 & 2010 \\\hline \text { Net sales } & \$ 4,970 & \$ 4,500 & \$ 3,980 & \$ 3,270 & \$ 4,750 & \$ 4,400 \\\hline \text { Percentages } & 113.0 \% & 102.3 \% & 90.5 \% & 74.3 \% & 108.0 \% & 100.0 \% \\\hline\end{array}$$
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Which of the following is a correct conclusion from the above analysis?

• A) Net sales in 2013 were equal to 90.5% of year 2012 net sales.
• B) Net sales in 2013 were up 90.5% over the previous year.
• C) Net sales in 2013 were equal to 90.5% of 2010 net sales.
• D) Net sales in 2013 were down 90.5% from year 2010.

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Definitions:

Perfect Competition

A market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can affect prices.

Marginal Cost (MC)

The increase in total cost that results from producing 1 more unit of output. Marginal costs reflect changes in variable costs.

Marginal Cost

The financial increment incurred by the production of an extra unit of a product or service.

Average Total Cost

It refers to the total cost per unit of output, calculated by dividing the total cost of production by the number of units produced.