EKP Purchased a Raw Material in Bulk for $10,000

question 76

Multiple Choice

EKP purchased a raw material in bulk for $10,000.It then spent an additional $500 to package the product into smaller quantities which it can sell for $12,000.Recently, a situation has arisen in which EKP can add an additional ingredient to the individual packages and sell them for $14,000.The cost of adding the additional ingredient is $1,700.Which amounts are relevant to the decision?

• A)$10,000 + $500, $12,000 and $14,000
• B)$10,000 + $500, $1,700 and $14,000
• C)$12,000, $1,700 and $14,000
• D)$10,000, $500, $12,000, $14,000 and $1,700

---

Definitions:

White Blood Cells

Cells of the immune system involved in defending the body against both infectious disease and foreign materials.

Spleen

An organ located under the ribcage and above the stomach in the left upper quadrant of the abdomen. It acts in filtering and storing blood as part of the immune system.

Abdomen

The part of the body containing the digestive organs; located between the thorax and pelvis.

Stomach

The digestive organ in the gastrointestinal tract that breaks down food with acid and enzymes.