In 2017, Pop Construction Corp

question 13

Multiple Choice

In 2017, Pop Construction Corp.began work on a contract for $3,700,000.Other details follow: Pop uses the percentage-of-completion method.For calendar 2017, Pop should report gross profit of

• A)$150,000.
• B)$420,000.
• C)$700,000.
• D)$2,220,000.

---

Definitions:

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price, indicating how changes in price affect consumer demand or supply levels.

Linear Demand Curve

Represents a straight-line graph which shows the inverse relationship between the price of an item and the quantity demanded, assuming other factors remain constant.

Price Elasticity

An assessment of the responsiveness of the quantity demanded to price changes of a good.

Marginal Revenue

The additional revenue gained from selling one more unit of a good or service.