Question
1.Using the linear model for costs and profit when selling bottles of ginger beer, if: fixed costs are $500, variable costs are $3/bottle, and you
1.Using the linear model for costs and profit when selling bottles of ginger beer, if:
fixed costs are $500, variable costs are $3/bottle, and you can sell each bottle for $15...
Compared to the current level, if the variable cost per bottle were lower, the breakeven quantity would be ......
Group of answer choices
A. lower
B. the same
C. higher
2.Using the linear model for costs and profit when selling bottles of ginger beer, if: fixed costs are $500, variable costs are $3/bottle, and you can sell each bottle for $15...
Total revenue for a quantity of 30 bottles is.....?
3.Using the linear model for costs and profit when selling bottles of ginger beer, if:
For production method A, fixed costs are $500, variable costs are $3/bottle, and you can sell each bottle for $15...
but you now have the option of an alternative method of production: Method B, where there are no fixed costs, but variable costs are $5/bottle. Which method would be more profitable if you knew you could sell 150 bottles?
A. Both the same
B. A
C. B
4.Using the linear model for costs and profit when selling bottles of ginger beer, if:
For production method A, fixed costs are $500, variable costs are $3/bottle, and you can sell each bottle for $15...
but you now have the option of an alternative method of production: Method B, where there are no fixed costs, but variable costs are $5/bottle. Which method would be more profitable if you knew you could sell 350 bottles?
A. B
B. A
C. Both are the same
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