Suppose When the Price of Pizza Goes from $8 to $12

question 143

Multiple Choice

Suppose when the price of pizza goes from $8 to $12 per pie,production increases from 2,500 pies to 4,000 pies per month.Using the mid-point method,the percentage change in price is:

• A) 40 percent
• B) 46 percent
• C) 1.31
• D) 0.35

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Definitions:

Credit Policies

The guidelines that a company follows to determine credit limits, terms, and conditions for its customers.

Working Capital Investment

Funds invested in a company's short-term assets, like inventory and accounts receivable, which are necessary for its day-to-day operations.

Accounts Receivable

Amounts owed to a business by customers for goods or services that have been delivered but not yet paid for.

Inventory

The total amount of goods and materials held in stock by a business, part of the company's current assets.