Table 6-6 Sam's Wholesale Bikes -Refer to Table 6-6

question 132

Multiple Choice

Table 6-6 Sam's Wholesale Bikes $\begin{array} { | l | l | } \hline \text { January } 1 \text { inventory balance } & 15 \text { units at } \$ 350 \text { per unit } \\\hline \text { January } 4 \text { purchase } & 50 \text { units at } \$ 375 \text { per unit } \\\hline \text { January } 15 \text { sale } & 40 \text { units at } \$ 550 \text { per unit } \\\hline \text { February } 8 \text { purchase } & 80 \text { units at } \$ 405 \text { per unit } \\\hline \text { February } 15 \text { sale } & 70 \text { units at } \$ 550 \text { per unit } \\\hline\end{array}$
-Refer to Table 6-6. What is the gross margin for the two months assuming that Sam's uses the periodic inventory FIFO inventory method?

• A)$4,100
• B)$21,600
• C)$11,600
• D)$18,275

---

Definitions:

Willingness To Pay

The maximum amount an individual is prepared to spend on a good or service, reflecting the perceived value.

Revenue

The total amount of money generated from the sale of goods or services before any expenses are subtracted.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 (impossible) and 1 (certain).

Foreclosed

The legal process by which an owner's right to a property is terminated, usually due to failure to meet mortgage payment obligations.