Dave, a student who knits ski caps with tassels, sells the same number of caps this year as last year, but at 20 percent higher prices. What can we conclude?

Question

Quizplus · Accepted Answer

We do not have enough information about the cost of producing the caps or any other financial details to confidently say whether Dave is better off this year than last year. While he sold the same number of caps, we do know that he sold them at a higher price, which would increase his gross revenue. However, without knowing his expenses or any other financial details, we cannot say for certain whether his net income is higher this year or not.

Dave, a Student Who Knits Ski Caps with Tassels, Sells