Based on the Table Below and the Principle of Diminishing

question 134

Multiple Choice

Based on the table below and the principle of diminishing returns to capital,then total packages wrapped when a fourth machine is installed must be less than ______ packages. $$\begin{array} { | c | c | } \hline \text { Number of (Identical) Machines } & \text { Total Packages Wrapped } \\\hline 1 & 5000 \\\hline 2 & 9,000 \\\hline 3 & 12,000 \\\hline\end{array}$$

• A)3,000
• B)4,000
• C)12,000
• D)15,000

Understand and apply the concept of trade discounts and their effects on merchandise costs.

Calculate and understand the effects of sales discounts, returns, and allowances on gross profit.

Recognize the importance of the cost of merchandise sold and its calculation under perpetual and periodic systems.

Understand the preparation and components of a multiple-step income statement for a merchandising company.

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Definitions:

Money Constraints

Financial limitations or restrictions that impact one's ability to spend, invest, or allocate funds.

Company Policy

Guidelines and rules set by a company to dictate behavior and procedures within the organization.

Passive Verb

A form of verb that indicates the subject of the sentence is the recipient of the action rather than the doer.

Recommendations

Suggestions or advice given based on analysis or expertise.