Tuesday, 16 December 2014

ECO 550 Final Exam Part 1 December 2014

·         Question 1

4 out of 4 points

In the linear breakeven model, the difference between selling price per unit and variable cost per unit is referred to as:

Answer

Selected Answer:

  

contribution margin per unit

Correct Answer:

  

contribution margin per unit

·         Question 2

4 out of 4 points

Theoretically, in a long-run cost function:

Answer

Selected Answer:

  

all inputs are considered variable

Correct Answer:

  

all inputs are considered variable

·         Question 3

4 out of 4 points

George Webb Restaurant collects on the average $5 per customer at its breakfast & lunch diner. Its variable cost per customer averages $3, and its annual fixed cost is $40,000.  If George Webb wants to make a profit of $20,000 per year at the diner, it will have to serve__________ customers per year.

Answer

Selected Answer:

  

30,000 customers

Correct Answer:

  

30,000 customers

·         Question 4

4 out of 4 points

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