What Is the Marginal Cost of the 120^th Unit of Output

question 72

Multiple Choice

What is the marginal cost of the 120^th unit of output in Figure 21.2?

• A) $1.20.
• B) $200.00.
• C) $208.00.
• D) $288.00.

---

Definitions:

ROE

Return on Equity; a financial ratio indicating the profitability of a company by comparing net income to shareholders' equity.

EBIT

Earnings Before Interest and Taxes, a measure of a company's profitability excluding interest and income tax expenses.

Total Leverage

The combined effect of using both operating leverage and financial leverage on a company's earnings before interest and taxes (EBIT).

Variable Cost Ratio

The proportion of variable costs to sales or production output, indicating how variable costs change with changes in output.