Suppose a Company Has Fixed Costs of $27,000 and Variable

question 28

Multiple Choice

Suppose a company has fixed costs of $27,000 and variable costs of dollars per unit, where x is the total number of units produced. Suppose further that the selling price of its product is dollars per unit. Find the maximum revenue. Round your answer to the nearest cent. ​

• A) Maximum revenue is $1,026.70.
• B) Maximum revenue is $27,000.00.
• C) Maximum revenue is $26,862.50.
• D) Maximum revenue is $677,343.75.
• E) Maximum revenue is $612.50.

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Definitions:

Right of Distress

The legal ability of a landlord to seize a tenant's assets for unpaid rent or other dues.

Guarantor

A person or entity that agrees to be responsible for another's debt or obligations in the event that the latter defaults or fails to meet their contractual obligations.

Secured Debt

A type of debt that is backed by collateral to reduce the risk for the lender, allowing the lender to reclaim the asset if the debt is not paid.

Builders' Liens

Legal claims against a property by workers or suppliers who have not been paid for services or materials provided in the construction or improvement of that property.