Table 4-5 -Refer to Table 4-5. the Table Above Lists the Highest

question 281

Multiple Choice

Table 4-5

-Refer to Table 4-5. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one of the tickets is $36,

• A) Violet and Walter will each buy two tickets.
• B) Walter will receive $4 of consumer surplus from buying one ticket.
• C) Violet and Walter receive a total of $52 of consumer surplus from buying one ticket each. No one else will buy a ticket.
• D) Xavier, Yolanda, and Zachary will receive a total of $68 of consumer surplus since they will buy no tickets.

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Definitions:

Margin Of Safety

A figure that indicates the possible decrease in sales that may occur before an operating loss results; may be expressed in terms of sales dollars, sales units, or percent of current sales.

Unit Selling Price

The price at which a single unit of a product or service is sold, not accounting for discounts or modifications.

Sales

The revenue generated from the sale of goods or services by a company during a particular period.

Unit Contribution Margin

The amount of revenue per unit sold that exceeds the variable costs involved in producing that unit.