Highrise Constructions Ltd Had a Large Three-Year Project with Total

question 2

Multiple Choice

Highrise Constructions Ltd had a large three-year project with total revenue of $5 000 000 and estimated total costs of $4 200 000. The project was 25 per cent complete at the end of the first year, 55 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 first year if the percentage of completion method was used?

• A) $200 000
• B) $240 000
• C) $250 000
• D) $800 000

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Definitions:

Purchase Bundle

A combination of goods and services that a consumer buys at a given time.

Budget Constraint

Refers to the limitations on the consumption choices of individuals based on their income and the prices of goods and services.

Choice Set

A set of all possible options available to a consumer from which he or she can make a selection.

Area

In a geographical or economic context, can refer to a specified region or domain under consideration for its characteristics or resources.