Yoram's Utility Function Is U(x, Y)= 2x + 5y

question 1

Multiple Choice

Yoram's utility function is U(x, y) = 2x + 5y.The price of x is $4 and the price of y is $15.Yoram has $150 a week to spend on x and y.Yoram is offered a chance to join a club of y consumers.If he joins, he can get y at a price of $10.What is the most that Yoram would be willing to pay to join the club?

• A)Nothing
• B)$30 a week
• C)$50 a week
• D)$75 a week
• E)None of the above.

Calculate break-even points in units and dollars using relevant formulas.

Use target income analysis to determine required sales in units or dollars to achieve a desired profit level.

Understand the degree of operating leverage and its use in measuring the sensitivity of operating income to changes in sales volume.

Interpret and analyze financial information to make informed business decisions related to sales, costs, and profit.

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Definitions:

Hernia

The protrusion of an organ through the wall that usually contains it, such as a hiatal or inguinal hernia.

Muscle

Tissue in the body composed of fibers capable of contracting to produce movement or maintain the posture of the body.

Meningitis

An inflammation of the protective membranes covering the brain and spinal cord, potentially caused by infection (viral, bacterial, or fungal).

Spinal Cord

The long, thin, tubular structure composed of nervous tissue that extends from the brainstem down the back, enabling communication between the brain and the body.