An Electronics Store Manager Stocks from 30 to 40 IBM-Compatible

question 20

Multiple Choice

An electronics store manager stocks from 30 to 40 IBM-compatible computers and from 40 to 50 Macintosh computers. There is room in the store to stock up to 80 computers. The manager receives a commission of $60 on the sale of each IBM-compatible computer and $30 on the sale of each Macintosh computer. If the manager can sell all of the computers, find the maximum commission.

• A) $3,700
• B) $3,300
• C) $3,200
• D) $3,600
• E) $3,800

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Definitions:

Direct Method

A method of preparing the cash flow statement in which actual cash flow information from the company’s operations segment is used, instead of adjustments to net income.

Direct Method

A means of presenting the cash flow statement where cash receipts and cash payments from operating activities are listed directly.

Retirement Of Debt

The process of paying off debt obligations, either by making scheduled payments or through a lump-sum payment.

Cash Flows

The total amount of money being transferred into and out of a business, particularly affecting the company's liquidity.