Use the Following Information for Questions

question 2

Multiple Choice

Use the following information for questions.

-Which of the following should be shown on the income statement for 2017 related to Contract 1?

• A)gross profit, $180,000
• B)gross profit, $240,000
• C)gross profit, $400,000
• D)gross profit, $420,000

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Definitions:

Perceptual Benefits

The intangible advantages consumers perceive they obtain from a product or service, which contribute to their purchasing decision.

Breath Mint

A small, flavored product designed to freshen breath and typically consumed after eating.

Chewing Gum

A soft, cohesive substance designed to be chewed without being swallowed, often used to freshen breath and maintain oral hygiene.

Pain Reliever

A type of medication or remedy designed to reduce or alleviate pain.