A Grocery Store Sells Soup for $1

question 160

Multiple Choice

A grocery store sells soup for $1.50 a can, or $2.50 for two cans.To a customer, the marginal cost of buying the second can of soup is

• A)$1.
• B)$1.25.
• C)$1.50.
• D)$2.50.

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Definitions:

Sales

Revenue generated from goods or services sold by a company during a specific period.

Purchase Returns

Goods returned by the buyer to the supplier usually due to defects or quality issues, sometimes leading to a refund or credit.

Sales Salary Expense

The total amount of salary and wages paid to employees involved in the sales process, reflected as an expense on the income statement.

Departmental Gross Profit

The gross profit of a specific department within a store or company, calculated by subtracting the cost of goods sold in that department from its sales revenue.