Simon Cereal Purchased 100 Pounds of Cornflakes for $100

question 42

Multiple Choice

Simon Cereal purchased 100 pounds of cornflakes for $100. Transportation cost to Simon's production facility was $25 for the barrel of cornflakes shipped FOB destination. Simon paid $60 for 100 one-pound biodegradable plastic bags into which the cornflakes were placed. The cost of each one-pound bag of cornflakes is:

• A)$1.00.
• B)$1.25.
• C)$1.60.
• D)$1.75.

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Definitions:

Total Market Value

The aggregate valuation of a company or asset based on current market prices.

Publicly Traded

Refers to companies whose shares are traded openly on the stock market, allowing anyone to buy or sell shares.

Research In Motion

A former name of BlackBerry Limited, a Canadian company known for its development of the BlackBerry smartphone.

Liquid Assets

Assets that can be quickly converted into cash with minimal loss of value.