Multi-Storey Builders Ltd Had a Large Three-Year Project with Total

question 18

Multiple Choice

Multi-Storey Builders Ltd had a large three-year project with total revenue of $8 000 000 and estimated total costs of $6 500 000.The project was 20 per cent complete at the end of the first year,70 per cent complete at the end of the second year and 100 per cent complete at the end of the third year.Revenues and costs were as estimated.
- How much profit was earned during the third year if the percentage of completion method was used?

• A) $450 000
• B) $750 000
• C) $1 500 000
• D) $240 000

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Definitions:

Monopolistic Competition

A market structure where many firms sell products that are similar but not identical, leading to competition but with limited market power for each firm.

Consumer Awareness

The understanding and knowledge that consumers have about products, services, and their rights, influencing their purchasing decisions and behaviors.

Demand

The capacity of consumers to purchase a good or service, considering their willingness and financial ability, at diverse prices over an established period.

Economic Inefficiencies

Circumstances where resources are not optimally allocated, leading to waste or losses in potential value within an economy.