If Sales Revenue Totals $84,000, Selling Price Is $6 Per

question 31

Multiple Choice

If sales revenue totals $84,000, selling price is $6 per unit, variable costs are $2.50 per unit and fixed costs are $48,000 per annum, the profit that will be earned is:

• A)$13,714.
• B)$19,200.
• C)$1,000.
• D)$5,600.

---

Definitions:

Surplus

An excess of production or supply over demand, often leading to lower prices.

Market Economy

An economic system where supply and demand from consumers and producers determine the production of goods and services.

Free Stuff

Items or services offered without charge, usually as part of a promotional strategy or as incentives.

Private Good

A type of good that is rivalrous and excludable, meaning its consumption by one individual prevents others from consuming it.