HHunter Company's Records Indicate the Following Information for the Year

question 108

Multiple Choice

H.Hunter Company's records indicate the following information for the year: On December 31, a physical inventory determined that ending inventory of $500,000 was in the warehouse.H.Hunter's gross profit on sales has remained constant at 30%. H.Hunter suspects some of the inventory may have been taken by some new employees.At December 31, what is the estimated cost of missing inventory?

• A)$60,000
• B)$100,000
• C)$150,000
• D)$1,340,000

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Definitions:

Demand Curves

Graphs that show the relationship between the price of a product and the quantity of the product demanded.

Income Effect

The change in an individual's or economy's consumption patterns due to a change in real income.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, holding the consumer's utility level constant.

Income Effect

The modification of income for people or economies and how this adjustment affects their purchasing desires for goods or services.