Consolidated Corporation Had the Following Information What Would Be the Price for a Product That Has

question 6

Multiple Choice

Consolidated Corporation had the following information: $$\begin{array} { l r r } \text { Revenues } & & \$ 250,000 \\\text { Cost of goods sold: } & \\\quad \text { Direct materials } & \$ 50,000 & \\\quad \text { Direct labor } & 37,500 & \\\quad \text { Overhead } & 62,500 & 150,000 \\\text { Gross profit } & & \$ 100,000 \\\text { Selling and administrative expenses } & & 37,500 \\\text { Operating income } & \$ 62,500 \\\hline\end{array}$$
What would be the price for a product that has a cost of $500, assuming that the markup is based on cost of goods sold?

• A)$625
• B)$708
• C)$834
• D)$2,000

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Money Supply

The comprehensive amount of money assets in an economy at a specific point in time.

United States

A country in North America consisting of 50 states, known for its significant global economic and cultural impact.

Short-term Rate

Interest rates on loans or financial products that are due within a short period, usually one year or less, significant for monetary policy and investment decisions.

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Regulations set by central banks regarding the minimum amount of reserves that banks must hold against deposits.