Kelly Sells 70 Shares of Stock She Owns for a Total

question 4

Multiple Choice

Kelly sells 70 shares of stock she owns for a total of $480. If the stock was in two different companies, one selling at $4.50 a share and the other at $8.25 a share, how many of each did she sell?

• A)26 at $4.50 and 44 at $8.25
• B)30 at $4.50 and 40 at $8.25
• C)22 at $4.50 and 48 at $8.25
• D)29 at $4.50 and 41 at $8.25
• E)23 at $4.50 and 47 at $8.25

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Definitions:

Opportunity Cost

The economic consequence of not opting for the immediate secondary option when a decision is made.

Salvage Value

An approximation of an asset's value at the conclusion of its effective lifespan.

Erosion Cost

The gradual loss of asset value due to factors like wear, tear, and technological obsolescence, affecting long-term profitability.

Depreciation

The planned apportionment of the price of a tangible asset across its operational lifetime.