YZ Inc Is a Wholesaler of Electronics

question 86

Multiple Choice

YZ Inc. is a wholesaler of electronics. It purchased 1,000 units of Product X for $500 each during 2012. The selling price during the year was $750 per unit. At year end, it had 100 units on hand and due of changes in technology, the selling price will have to be reduced by 40% in order to sell them. The value of each unit of Product X for the year-end inventory presentation should be

• A)$600.
• B)$500.
• C)$400.
• D)$450.

---

Definitions:

Protective Tariff

A tax imposed on imports to protect domestic industries from foreign competition.

Excise Tax

A specific tax imposed on certain goods, products, or activities, usually to discourage consumption or to raise revenue.

Comparative Advantage

An economic theory that describes how a country or entity can produce goods and services at a lower opportunity cost than others.

International Trade

Trading goods, services, and capital across borders or territories between countries.