Timmy's Toys Expects to Make Purchases of $181,775

question 24

Multiple Choice

Timmy's Toys expects to make purchases of $181,775. It anticipates an opening inventory of $65,225 and closing inventory of $19,000. If its Sales Revenue is $365,030, what will the Company's cost of goods sold be?

• A) $247,000
• B) $346,030
• C) $266,000
• D) $228,000
• E) $183,255

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Definitions:

Consumer Surplus

The variance between the sum consumers are ready and able to spend on a good or service and what they really pay.

Producer Surplus

The gap between the amount producers are prepared to accept for a product or service and the actual payment they get.

Maximum Sum

The largest possible aggregate or total achieved from combining specific elements or numbers.

Output

The amount of goods or services produced by a firm, industry, or economy within a given period, an indicator of productivity.