Kentucky Purchases and Sells Widgets If the Company Sold 7700 Units of Widgets During 2017,how

question 30

Multiple Choice

Kentucky purchases and sells widgets.The following information summarises Kentucky's operating activities for 2017:
$$\begin{array} { | l | l | } \hline \text { Selling and administrative expenses } & \$ 4600 \\\hline \text { Purchases } & 159,000 \\\hline \text { Sales revenue } & 785,000 \\\hline \text { Inventory, 1 January 2017 } & 33,600 \\\hline \text { Inventory, 31 December 2017 } & 76,800 \\\hline\end{array}$$
If the company sold 7700 units of widgets during 2017,how much is the cost for one widget?

• A) $20.65
• B) $25.01
• C) $14.34
• D) $15.04

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Definitions:

Marginal Cost

The price of creating one more unit of a particular product or service.

Marginal Revenue

The additional income generated from selling one more unit of a product or service, crucial for decision-making in production and pricing strategies.

ΔTR/Δq

Represents the change in total revenue divided by the change in quantity sold, indicating marginal revenue.

TR/q

Represents Total Revenue divided by quantity, a formula used to calculate average revenue per unit sold.