Simple Inc.had Sales of $1,500,000,including

question 9

Multiple Choice

Simple Inc.had sales of $1,500,000,including:
• $30,000 of goods sold that were on consignment from an unrelated company on December 28,2018
• $10,000 of goods shipped F.O.B shipping point on December 28,2018.
• $20,000 of goods shipped F.O.B.destination point on December 31,2018.
On its income statement,what amount of net sales should Simple Inc.record for 2018?

• A)$1,440,000
• B)$1,470,000
• C)$1,480,000
• D)$1,490,000

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied equals the quantity demanded at the market equilibrium price.

Domestic Demand Curve

A graphical representation showing the quantity of a product that consumers in a domestic market are willing to purchase at various prices.

World Price

The international market price of a good, influenced by global supply and demand factors.

Importing Steel

The act of bringing in steel from other countries to meet domestic demand or for manufacturing purposes, often due to a lack of local supply or cost effectiveness.