The Following Information Is Available for Pear Limited for 2017

question 72

Multiple Choice

The following information is available for Pear Limited for 2017: Assuming the company records purchases at gross amounts, the total purchases for 2017 would be

• A)$48,200.
• B)$61,000.
• C)$55,200.
• D)$59,800.

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Definitions:

Variable Expenses

Costs that change in proportion to the level of production or sales activities of a business.

Fixed Expenses

Costs that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance.

Net Operating Income

Income before interest and income taxes have been deducted.

Drop Product

A strategy or decision by a company to discontinue the production, sale, or support of a product line or item.