Table 94 Table 94 Lists Estimated Revenues and Costs (Per Week) for Plastic

question 97

Multiple Choice

Table 9.4
$\begin{array}{|c|c|c|c|c|c|c|}\hline \begin{array}{c}\text { Quantity } \\\text { Sold }\end{array} & \begin{array}{c}\text { Price } \\\text { (dollars ) }\end{array} & \begin{array}{c}\text { Total } \\\text { Revenue } \\\text { (dollars) }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Revenue }\end{array} & \begin{array}{c}\text {Total}\\\text { Cost } \\\text { (dollars) }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Cost }\end{array} & \begin{array}{c}\text { Profit } \\\text { (dollars) }\end{array} \\\hline 0 & 10 & 0 & \cdots & 2 & \cdots & -2 \\\hline 1 & 9 & 9 & & 8 & & \\\hline 2 & 8 & 16 & & 13 & & \\\hline 3 & 7 & 21 & & 17 & & \\\hline 4 & 6 & 24 & & 20 & & \\\hline 5 & 5 & 25 & & 22 & & \\\hline 6 & 4 & 24 & & 26 & & \\\hline\end{array}$
Table 9.4 lists estimated revenues and costs (per week) for plastic vials (100 vials per box) for the Victoria Biological Supplies Company. Victoria sells plastic vials to university and private research laboratories.
-Refer to Table 9.4.Victoria's profit-maximising quantity sold (Q) and price (P) are _______.

• A) Q = 3; P = $7
• B) Q = 4; P = $6
• C) Q = 5; P = $5
• D) Q = 6; P = $4

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Definitions:

Present Value

The present worth of a future amount of money or series of monetary inflows, considering a certain rate of interest.

Present Value Amount

The current value of a future sum of money or stream of cash flows given a specified rate of return, important in discounting and investment decisions.

Rate of Earnings

A measure of profitability that indicates how much profits a company generates from its operations.

Present Value Factor

A factor used to calculate the present value of a future amount of money or stream of payments, considering a specific interest rate.