Figure 6-6
Suppose That a Sawmill Processes Logs into Four

question 22

Multiple Choice

Figure 6-6
Suppose that a sawmill processes logs into four grades of lumber totaling 500,000 board feet as follows at a joint cost of £300,000: $$\begin{array} { l c c } \text { Grade } & \text { Board Feet } & \text { Final Sales Value } \\\text { First and second } & 75,000 & £ 56,250 \\\text { No. } 1 \text { common } & 200,000 & 180,000 \\\text { No. } 2 \text { common } & 100,000 & 105,000 \\\text { No. } 3 \text { common } & 125,000 & 127,500\end{array}$$
-Refer to Figure 6-6. What is the gross profit of No. 3 common if the constant gross margin percentage method is used?

• A)£45,900
• B)£168,750
• C)£81,600
• D)£135,000

Understanding the fundamental parties to checks and notes.

Grasping the criteria for the negotiability requirement being payable at a definite time under Article 3.

Differentiating between the effects of references to other agreements on negotiable instruments and understanding when an instrument becomes subject to the terms of another agreement.

Identifying and summarizing the requirements of negotiability as stipulated by the Code.

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Definitions:

Unemployment

The situation in which individuals who are capable of working and are looking for a job are unable to find employment.

Federal Debt

A stock variable that measures the net accumulation of annual federal deficits.

Stock Variable

A measure of a quantity at a particular point in time, contrasting with flow variables, which are measured over a period of time.

Federal Deficits

The amount by which government spending exceeds revenue over a period, usually a fiscal year.