Suppose You Are the Owner of a Picture Frame Store

question 53

Multiple Choice

Suppose you are the owner of a picture frame store and you wish to calculate how many pictures you must sell to cover your fixed and variable costs at a given price.Let's assume that the demand for your pictures is strong,so the average price customers are willing to pay for each picture frame is $120.Also,suppose your fixed costs (FC) total $32,000 (real estate taxes,interest on a bank loan,etc. ) and unit variable cost (UVC) for a picture frame is $50 (labor,glass,frame,and matting) .If your picture frame store sold 2,000 picture frames,what would your profit (or loss) be?

• A)a loss of $32,000
• B)$0-only able to break-even
• C)$100,000 profit
• D)$108,000 profit
• E)$132,000 profit

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Definitions:

Voice Effect

A phenomenon where expressing one's opinions or grievances can lead to feelings of satisfaction or being heard, even if no actual change occurs.

Favorably to Decisions

Refers to making choices that are considered positive or beneficial in their outcomes.

Plurality Rule

A decision-making process where the option that receives the most votes or support, but not necessarily a majority, wins.

Hidden Profile

A hidden profile refers to a situation in group decision-making where the best decision is supported by information that is not initially shared among all group members.