Use the Following Selected Information from Wheeler, LLC to Determine

question 6

Multiple Choice

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for cost of goods sold using 2016 as the base. $\begin{array}{|l|r|r|}\hline & \mathbf{2 0 1 7} &2016 \\\hline \text { Net sales } & \$ 276,200 & \$ 231,400 \\\hline \text { Cost of goods sold } & 151,900 & 129,590 \\\hline \text { Operating expenses } & 55,240 & 53,240 \\\hline \text { Net earnings } & 27,820 & 19,820\\\hline\end{array}$

• A)117.2% for 2017 and 100.0% for 2016.
• B)119.4% for 2017 and 100.0% for 2016.
• C)55.0% for 2017 and 56.0% for 2016.
• D)36.4% for 2017 and 41.1% for 2016.
• E)65.1% for 2017 and 64.6% for 2016.

Recognize the relationship between product standardization and market competition.

Understand the characteristics and implications of purely competitive market settings for firms.

Understand the concept of pure competition in market structures.

Identify the characteristics and implications of being a price taker in a purely competitive market.

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Definitions:

Personal Liability

The legal responsibility of an individual to satisfy debts or obligations from personal assets, not protected by limited liability through a corporate structure.

Incorporators

Individuals involved in forming a corporation, who sign the articles of incorporation and may act as temporary directors until a board is elected.

Perfunctory

Carried out with a minimum of effort or reflection.

Short-lived

Referring to something that lasts for a brief period of time.