Suppose Total Benefits and Total Costs Are Given by B(Y)=

question 86

Multiple Choice

Suppose total benefits and total costs are given by B(Y) = 150Y − 10Y² and C(Y) = 5Y².Then marginal benefits are:

• A) 150 − 20Y.
• B) 150Y − 8Y².
• C) 15 − 4Y.
• D) 5 − 20Y.

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Definitions:

Profit-Volume Chart

A graphical representation that shows the relationship between a firm's profits and its volume of sales.

Cost-Volume-Profit Chart

A graphical tool used in managerial accounting to analyze how changes in cost and volume affect a company's profit.

Contribution Margin

The gap between a product's sales revenue and its variable expenses, which serves to offset fixed costs and produce earnings.

Variable Cost

Expenses that adjust in direct correlation with changes in production or sales levels.