Suppose You Are the Owner of a Picture Frame Store

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 13-10 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)