The Added Revenue That Comes from Producing and Selling Another

question 9

Multiple Choice

The added revenue that comes from producing and selling another unit of a good is called

• A)marginal cost.
• B)price.
• C)marginal product.
• D)average revenue.
• E)marginal revenue.

---

Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period of time.

Cost-Volume-Profit Relationships

An analysis tool measuring how changes in costs, sales volume, and price affect a company’s profit.

Net Operating Income

The profit realized from a business's operations after subtracting operating expenses from gross profit.

Sold Unit

Refers to a single unit of product that has been sold, representing a measure of the volume of sales transactions.