Table 1-2 Thuy Anh Runs a Small Flower Shop in the Town

question 191

Multiple Choice

Table 1-2

Thuy Anh runs a small flower shop in the town of Florabunda. She is debating whether she should extend her hours of operation. Thuy Anh figures that her sales revenue will depend on the number of extra hours the flower shop is open as shown in the table above. She would have to hire a worker for those extra hours at a wage rate of $16 per hour.
-Refer to Table 1-2.What is Thuy Anh's marginal benefit if she decides to stay open for an extra three hours instead of two hours?

• A)$0
• B)$20
• C)$25
• D)$45
• E)$70

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Definitions:

Current Market Value

The present price at which an asset or a service can be bought or sold in the marketplace.

Net Realizable Value

Net Realizable Value is the estimated selling price of goods, minus the estimated costs of completion and the costs necessary to make the sale.

Summary of Significant Accounting Policies

A section in financial statements outlining the major accounting policies and methods used by an organization, ensuring transparency and consistency.

Inventory Method

An accounting approach used to evaluate and manage the merchandise or goods a company has in stock, affecting how the cost of goods sold and ending inventory are reported.