Can someone pls explaing the terms
1 Gross Profit.
2 Revenues - I think it means total sales.
Pls see the question.
OA is E.
1 Gross Profit.
2 Revenues - I think it means total sales.
Pls see the question.
OA is E.
- Attachments
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For gross profit we need to know that Revenue - Cost.
(1)
revenues was number of units * sale price: 1000*(k+60) = 150,000. that's mean that k=90. we still don't have T so we can know the Cost. insufficient.
(2)
the cost of producing 500 units:
500k + t
the cost of producing 1000 units:
1000k + t
and from the information we know that 500k + t + 45000 = 1000k + t. and that's again k=90. insufficient.
(1) & (2):
we can't still know t, so we can't compute the cost or the profits.
hence (E)
