-Refer to Table 10-2. What is the marginal profit from producing and selling the 5th case?
A) $275
B) $145
C) $35
D) $20

Question

Quizplus · Accepted Answer

The marginal profit from producing and selling the 5th case can be found by subtracting the total cost of producing 5 cases ($425) from the total revenue earned from selling 5 cases ($525), which results in a marginal profit of $100. Therefore, the best choice would be to produce and sell the 5th case, as it provides the highest marginal profit.