American Lumber Has the Following Company Information for October: Goods

question 40

Multiple Choice

American Lumber has the following company information for October: goods available for sale at cost are $24,000, retail is $36,500, and sales at retail equal $28,500. Bert has a normal gross profit of 20%. The cost of estimated ending inventory under the retail method is: (Round any percentages to two decimal places, X.XX%, and your final answer to the nearest dollar.)

• A) $5,260.
• B) $6,246.
• C) $6,400.
• D) $1,600.

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Definitions:

Rate of Change

Rate of Change is a measure used in mathematics and economics to represent the speed at which a variable changes over a specific period of time.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events happening in a fixed interval of time or space, assuming events occur with a known constant rate and independently of the time since the last event.

Net Revenue

The total amount of income generated from sales or services after subtracting returns, allowances, and discounts.

Poisson Distribution

A discrete probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, given the average number of times the event occurs over that interval.