Question

Which of the following enables firms to make per-unit comparisons with product price?

a. Average cost data

b. Market research data

c. Sales revenue data

d. Profit margin data

e. Production volume data

Answer 1

Profit margin data enables firms to make per-unit comparisons with product price.

Step-by-step explanation:

The correct answer is d. Profit margin data. Profit margin data enables firms to make per-unit comparisons with product price. It is calculated by dividing the profit by the revenue, and it indicates the percentage of revenue that is left after deducting all expenses, including costs.

For example, if a firm has a profit margin of 10%, it means that for every unit sold, the firm is making a profit of 10% of the product price. This allows the firm to compare its per-unit profit with the product price to determine the profitability of each unit.