Stick Storage Manufactures and Sells Computer Flash Drives

question 574

Multiple Choice

Stick Storage manufactures and sells computer flash drives. Last year it sold 2 million flash drives at a price of $10 each. For last year, the firm's

• A)accounting profit was $20 million.
• B)economic profit was $20 million.
• C)total revenue was $20 million.
• D)explicit costs was $20 million.

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Definitions:

Raw Materials Purchases

The total cost of raw materials bought by a company for production purposes during a specific time frame.

Cash Balance

Represents the amount of cash a company has on hand or in its bank accounts at any given time.

Cash Receipts

The total amount of money received by a business or individual within a given period through transactions or other forms of payment.

Cash Disbursements

Payments made in cash or cash equivalents, covering various expenses such as salaries, supplies, and other operational costs.