On June 1, Freedom Distributions (FD) Shipped 100 TVs to Universal

question 57

Multiple Choice

On June 1, Freedom Distributions (FD) shipped 100 TVs to Universal TV (UTV) on consignment. FD buys these TVs from their supplier for $ 600 each and sells them to UTV for $ 800. UTV then retails them for $ 1,200 each. By the end of June, Universal TV reported that they had sold 60 of these TVs, and remitted the appropriate amount to FD. How much revenue should be recorded by FD in connection with this transaction?

• A) $ 72,000
• B) $ 60,000
• C) $ 48,000
• D) $ 36,000

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Definitions:

Unconscious

Relating to the part of the mind that is inaccessible to conscious thought but that affects behavior and emotions.

Memory

The cognitive process involving encoding, storing, and retrieving information, allowing individuals to retain and recall past experiences.

Pleasure Principle

A psychoanalytic concept suggesting that people seek immediate gratification to fulfill their desires and avoid pain, without considering the consequences.

Reality Principle

A psychoanalytic concept that represents the ability of the mind to assess the external world and act upon it realistically, as opposed to the pleasure principle.