Table 5-5
the Following Items Were Taken from the December

question 173

Multiple Choice

Table 5-5
The following items were taken from the December 31, 2019, records of Speedy Boat Company, which uses a periodic inventory system: $$\begin{array} { | l | r | } \hline \text { Salary payable } & \$ 1,100 \\\hline \text { Sales revenue } & 480,000 \\\hline \text { Interest revenue } & 3,000 \\\hline \text { Freight in } & 20,000 \\\hline \text { Beginning inventory } & 35,000 \\\hline \text { Sales discounts } & 18,000 \\\hline \text { Purchases of inventory } & 240,000 \\\hline \text { Purchase retarns and allowances } & 35,000 \\\hline \text { Purchase discounts } & 10,000 \\\hline \text { Sales returns and allowances } & 35,000 \\\hline \text { Ending inventory } & 80,000 \\\hline \text { Operating expenses } & 85,000 \\\hline \text { Interest expense } & 7,000 \\\hline \text { Owner withdrawals } & 12,000 \\\hline\end{array}$$
-Refer to Table 5-5. The operating income for Speedy Boat Company is:

• A)$156,000.
• B)$172,000.
• C)$168,000.
• D)$160,000.

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Definitions:

Price Taker

A market participant that accepts prevailing prices as given, having no influence to alter the price of a good or service.

Marginal Revenue

The additional income from selling one more unit of a good; generally equal to the price of the good for perfectly competitive firms.

Differentiated Good

A Differentiated Good is a product or service that is distinct in some way from its competitors, whether through quality, features, branding, or customer service, allowing it to stand out in the marketplace.

Monopolistically Competitive

Describes a market structure where many firms sell products that are similar but not identical, leading to some degree of market power while still taking the market price as given.