Allison's Auto Art Is a Company That Applies Pinstripes to Vehicles.Allison's

question 160

Multiple Choice

Allison's Auto Art is a company that applies pinstripes to vehicles.Allison's cost for a basic 1-colour pinstriping job is $35,and she charges $95 for this service.For a total price of $175,Allison will apply a fancier 3-colour pinstripe to an automobile,a service that adds an additional $40 to the total cost of the package.What is Allison's marginal benefit if she sells a basic 1-colour job?

• A) $35
• B) $60
• C) $95
• D) The marginal benefit cannot be determined.

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Definitions:

Gross Margin Ratio

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a company's core activities.