Refer to the Data Provided in Table 16 -Refer to Table 16

question 138

Multiple Choice

Refer to the data provided in Table 16.1 below to answer the following questions.
Table 16.1 $$\begin{array} { c l l } \text { Tons of Salt } & \text { MC } & \text { MSC } \\\hline 1 & 10 & 20 \\2 & 20 & 30 \\3 & 30 & 40 \\4 & 40 & 50 \\5 & 50 & 60\end{array}$$
-Refer to Table 16.1. This salt processing firm is perfectly competitive and is not forced to take damage costs into account. If the market price of salt is $30 a ton and the firm behaves as a profit-maximizer, how much total damage will result?

• A) $10
• B) $30
• C) $40
• D) $90

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Definitions:

Activity Data

Information regarding the actions or operations within a process, often used in activity-based costing to allocate costs more accurately.

Management

The process of planning, organizing, leading, and controlling resources within an organization to achieve its objectives effectively and efficiently.

Cost Changes

Adjustments in the financial outlays associated with different business activities or over time.

Break-even Point

The level of sales at which total revenues equal total expenses, resulting in no net profit or loss.