Solved

-Suppose You Are the Owner of a Picture Frame Store

Question 299

Multiple Choice

-Suppose you are the owner of a picture frame store. Let's assume that 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 $40 (labor, glass, frame, and matting) . According to Figure 11-6 above, how much profit will your picture frame store make if it sells 400 picture frames? A) $48,000 B) $32,000 C) $16,000 D) $0 E) ($32,000)

-Suppose you are the owner of a picture frame store. Let's assume that 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 $40 (labor, glass, frame, and matting) . According to Figure 11-6 above, how much profit will your picture frame store make if it sells 400 picture frames?


A) $48,000
B) $32,000
C) $16,000
D) $0
E) ($32,000)

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q80: The total money received from the sale

Q134: Total cost refers to<br>A) the sum of

Q135: Ampro-Mag is a small company that makes

Q180: Tim Marlow,the owner of The Clock Works,wanted

Q230: Controlling agreements between independent buyers and sellers

Q295: North America's largest Smart TV company is<br>A)Samsung.<br>B)Panasonic.<br>C)LG.<br>D)Sony.<br>E)Vizio.

Q298: The maximum quantity of products consumers will

Q300: Price refers to<br>A)the value assigned to the

Q301: In the purchase of the sugar substitute

Q304: The price-setting process includes identifying pricing objectives