Table 14-3 The Table Represents a Demand Curve Faced by a Firm

question 270

Multiple Choice

Table 14-3
The table represents a demand curve faced by a firm in a competitive market.
-Refer to Table 14-3. For this firm, the price is

• A)$39.
• B)$26.
• C)$13.
• D)$0.

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Definitions:

Gross Profit Method

An estimating technique used to calculate inventory cost, based on the gross margin and cost of goods sold.

Gross Profit Ratio

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold; it is calculated by dividing gross profit by net sales.

Ending Inventory

The monetary amount of stock available for purchase at the end of an accounting term, which is the sum of the opening inventory and purchases, less the cost of goods sold.

Retail Inventory Method

An accounting procedure for estimating the final inventory balance of a retailer by using percentages of gross margins based on sales and the cost of goods sold.