If the Quantity Sold of Two-Liter Coke Bottles Increases by 10

question 22

Multiple Choice

If the quantity sold of two-liter Coke bottles increases by 10% when price falls by 2%,what is the total change in revenue?

• A)​Revenue increases by 12%
• B)Revenue increases by 8%
• C)Revenue falls by 8%
• D)​Revenue falls by 12%

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Definitions:

Reportable

Refers to information or actions that must be disclosed to regulatory authorities or in financial statements according to legal or regulatory requirements.

Combined Revenues

The total revenue generated by a group of companies or divisions consolidated into a single figure.

Commercial Substance

A situation where the risk, timing, or amount of the entity's future cash flows changes as a result of a financial transaction.

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, where the investment is recorded at original cost and subsequently adjusted to reflect the investor's share of the net assets of the investee.