If Tom Sells 500 Sandwiches for $7 and Has an Average

question 31

Multiple Choice

If Tom sells 500 sandwiches for $7 and has an average cost of $5, what is his total revenue?

• A) $500
• B) $1,000
• C) $2,500
• D) $3,500

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Definitions:

Inventory

The overall quantity of products and resources that a business possesses, which are either for sale or to be utilized in manufacturing.

Perpetual Inventory

A continuous tracking system for inventory that records the sale or purchase of inventory in real-time through the use of computerized systems.

Accounts Payable

Debts of a company reflecting the money owed to lenders or suppliers for products and services acquired on credit.

Inventory

All products and materials that a company holds, aimed at either resale or being incorporated into manufacturing processes.