The Accompanying Table Shows the Dollar Amount of Sales in 2012

question 75

Multiple Choice

The accompanying table shows the dollar amount of sales in 2012 for the four largest firms in the above-ground pool industry. Total industry sales in 2012 were $467,000. Use this table to answer the questions. $\begin{array}{lr}\text { Firm Name }&\text { Dollar Amount of Sales in } 2012\\\text { Bhre Water Island, Inc. } & \$ 112,000 \\\text { Backyard Paradise, Inc. } & \$ 47,000 \\\text { Tropical Waters, Inc. } & \$ 19,000 \\\text { Poolside Plastics, Inc. } & \$ 14,000 \\\text { All other firms in industry combined. } & \$ 275,000\end{array}$
-What is the four-firm concentration ratio in this industry?

• A) 24%
• B) 41%
• C) 68%
• D) 78%
• E) 94%

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Definitions:

Economic Benefits

The advantageous gains obtained from resources or actions, including income, profits, or intangible assets like brand reputation.

Fair Value

The expected price for unloading an asset or the charge for relocating a liability in an orderly market transaction at the reckoning time.

Identifiable Assets

Identifiable assets are company assets that can be separated from the entity, sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract.

Fair Value

The value likely to be obtained from disposing of an asset or the expense incurred in transferring a liability, within a structured exchange involving market entities at the time of assessment.