Use the Information Below to Answer the Following Question

question 4

Multiple Choice

Use the information below to answer the following question.
Pinkerton Ltd uses a perpetual control system for its inventory. It had the following data for a recent period:

If Pinkerton Ltd had employed the periodic inventory method, what would its gross profit have been?

• A) $280 000
• B) $300 000
• C) $320 000
• D) $440 000

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Definitions:

Utility Levels

A measure of the varying degrees of satisfaction or utility that consumers derive from different bundles of goods and services.

Preferences

The tastes, desires, or choices that consumers have regarding products, goods, or services.

Indifference Curves

Graphical representations used in economics to show different combinations of goods or services between which a consumer is indifferent.

Utility

Represents the satisfaction or benefit a consumer receives from consuming a product or service.