Zack Wants to Sell Five Items That Cost Him $1

question 110

Multiple Choice

Zack wants to sell five items that cost him $1.50, $2.70, $5.20, $13.00, and $17.70. He wants to make a profit of 70% of the cost. Create a function that you can use to determine the selling price of each item, and then use the function to calculate each selling price.

• A) Item 1 Item 2 Item 3 Item 4 Item 5 Cost $1.50 $2.70 $5.20 $13.00 $17.70 Selling price $4.05 $7.29 $14.04 $35.10 $47.79
• B) Item 1 Item 2 Item 3 Item 4 Item 5 Cost $1.50 $2.70 $5.20 $13.00 $17.70 Selling price $2.55 $4.59 $8.84 $22.10 $30.09
• C) Item 1 Item 2 Item 3 Item 4 Item 5 Cost $1.50 $2.70 $5.20 $13.00 $17.70 Selling price $1.05 $1.89 $3.64 $9.10 $12.39

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Definitions:

Accrual-Based Net Income

Net income calculated using the accrual method of accounting, which records revenue when earned and expenses when incurred, regardless of cash flow.

Upstream Intra-Entity Profits

Profits earned from transactions between a parent company and its subsidiary, where the subsidiary sells goods or services to the parent.

Excess Amortization Expense

An amount of amortization expense that exceeds the norm, potentially indicating an aggressive approach to reducing taxable income through depreciation.

Indirect Control

A form of influence where an entity can shape or guide the actions of another, without direct authority, often through intermediaries or other indirect means.