The Manager of Paul's Fruit and Vegetable Store Is Considering

question 26

Multiple Choice

The manager of Paul's fruit and vegetable store is considering the purchase of a new seedless watermelon from a wholesale distributor. Because this seedless watermelon costs $4,will sell for $7,and is highly perishable,he expects only to sell between six and nine of them. If the merchant purchases eight watermelons,the minimum opportunity loss occurs when the demand is how many units?

• A)6
• B)7
• C)8
• D)9

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Definitions:

Legal Form

Refers to the legal structure or type of business entity, such as corporation, partnership, sole proprietorship, etc., which determines legal liabilities and taxation methods.

Revenue

The total amount of money received by a company for goods sold or services provided during a specific time period.

Percentage-Of-Completion

An accounting method that recognizes revenues and gross profit on long-term contracts in proportion to the work completed to date.

Gross Profit

The difference between sales revenue and the cost of goods sold, representing the basic profitability of the sales of goods and services.