Figure 21-5 -Refer to Figure 21-5.Suppose a Consumer Has $100 in Income,the

question 55

Multiple Choice

Figure 21-5
-Refer to Figure 21-5.Suppose a consumer has $100 in income,the price of popcorn is $2,and the value of B is 100.What is the price of Mt.Dew?

• A) $1
• B) $2
• C) $5
• D) $100

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Definitions:

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal.

Net Income

The total profit or loss of a company after all revenues, expenses, taxes, and dividends have been accounted for.

FIFO

An inventory valuation method that assumes the first items purchased are the first ones sold, standing for "First In, First Out."

Gross Profit

The difference between sales revenue and the cost of goods sold before accounting for other operating expenses.