Fragment Company Is a Wholesaler That Sells Merchandise in Large

question 194

Multiple Choice

Fragment Company is a wholesaler that sells merchandise in large quantities.Its catalog indicates a list price of $300 per unit on a particular product and a 40% trade discount is offered for quantity purchases of 50 units or more.The cost of shipping the merchandise is $7 per unit under terms FOB shipping point.If a customer purchases 100 units of this product,what is the amount of sales revenue that Fragment will record from this sale?

• A)$18,000
• B)$30,000
• C)$18,700
• D)$29,300
• E)$30,700

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Definitions:

Satisfaction

In economics, often related to utility or the level of contentment derived from the consumption of goods and services.

Utility

A term in economics referring to the satisfaction or benefit derived by consuming a product or service.

Consumption

Refers to the use of goods and services by households.

Utils

An imaginary unit of measurement used in economics to represent the satisfaction or utility received from consuming goods and services.