A Manager Purchases Fresh Fish for $9

question 29

Multiple Choice

A manager purchases fresh fish for $9.60 a pound. After cleaning and filleting the product the waste percentage for the fish is 34%. What is the EP cost per pound for this fish item?

• A) $15.00
• B) $17.50
• C) $20.00
• D) $22.50

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Definitions:

Indirect Method

A method of presenting the operating activities section of the statement of cash flows that adjusts net income to compute cash flows from operating activities.

Net Income

The net income of a company, which is the remaining amount of total revenue after deducting all expenses and taxes.

Inventory

The total amount of goods and materials held by a company intended for sale or production.