Refer to the Following Table to Answer the Following Questions

question 126

Multiple Choice

Refer to the following table to answer the following questions:

-Assume that strawberries cost $1 and apples cost $2.If the consumer has $8,the bundle of goods that would maximize his utility per dollar leads to a utility equal to ________ utils.

• A) 49
• B) 84
• C) 77
• D) 66
• E) 46

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Definitions:

Absorption Costing

An accounting method that includes all direct costs and allocated overheads in the cost of a product or service, as opposed to variable costing which excludes certain overheads.

Ending Inventory

The total value of goods available for sale at the end of an accounting period or fiscal year.

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed manufacturing overhead.

Net Operating Income

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