The Revenue from the Sale of X Units of a Commodity

question 20

Multiple Choice

The revenue from the sale of x units of a commodity is r(x) Canadian dollars, and u(r) U.S. dollars is the equivalent value of r Canadian dollars. On September 8, 2009, $1 Canadian was worth $1.0764 U.S., and the rate of change of the U.S. dollar value was $0.925 U.S. per Canadian dollar. On the same day, sales were 470 units, producing revenue of $10,000 Canadian, and revenue was increasing by $4.2 Canadian per unit. Evaluate of the given expression on September 8, 2009, and write a sentence interpreting the value.

• A) Canadian dollars per unit On September 8, 2009, revenue was increasing by 4.2 Canadian dollars per unit.
• B) Canadian dollars per unit On September 8, 2009, revenue was increasing by 470 Canadian dollars per unit.
• C) Canadian dollars per unit On September 8, 2009, revenue was decreasing by 8.4 Canadian dollars per unit.
• D) Canadian dollars per unit On September 8, 2009, revenue was decreasing by 4.2 Canadian dollars per unit.
• E) Canadian dollars per unit On September 8, 2009, revenue was increasing by 8.4 Canadian dollars per unit.

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Definitions:

Direct Materials

Raw materials that are directly used in the production of a product and can be easily attributed to that product.

Direct Labor

The cost of workers who can be directly traced to the production of products.

Overhead Cost

Indirect expenses related to the day-to-day operations of a business, such as rent, utilities, and administrative salaries.

Work in Process Inventory

Goods that are in the process of being produced but are not yet finished products in manufacturing.