Given the Following Data, What Is the Gross Margin If

question 62

Multiple Choice

Given the following data, what is the gross margin if cost of goods sold is determined using the FIFO periodic method? $\begin{array} { | l | l | } \hline \text { Sales revenue } & 200 \text { units at } \$ 20 \text { per unit } \\\hline \text { Beginning inventory } & 60 \text { units at } \$ 12 \text { per unit } \\\hline \text { Purchases } & 210 \text { units at } \$ 13 \text { per unit } \\\hline\end{array}$

• A)$2,540
• B)$1,460
• C)$1,400
• D)$1,390

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Definitions:

Lower Price Buyers

Consumers who prioritize purchasing items at the lowest possible prices, often influencing market dynamics.

Wastage

The act or process of losing resources or materials inefficiently or unproductively.

Revenue Management

The use of analytics and data to predict consumer behavior, optimize product availability and pricing, and maximize revenue growth.

Differential Pricing

Differential pricing is a strategy where a company charges different prices for the same product or service in different markets or segments, based on factors like customer willingness to pay, market demand, or competition.