The Following Information Pertains to Bright Toy Company's Operating Activities

question 121

Multiple Choice

The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012. What is the gross profit for 2012?

• A)$120,000
• B)$130,000
• C)$140,000
• D)$136,000

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Definitions:

Apparent Authority

A situation where a reasonably prudent person would understand that an agent had the authority to act, even if the agent didn't have actual authority.

Purported Principal

An entity or individual represented as having granted authority to another, whether or not such authority actually exists.

Disclosed Principal

A principal whose identity is known by the third parties with whom the agent enters into contracts on behalf of the principal.

Mutually Agreed

A condition or circumstance where all parties involved have consented to the terms or decisions proposed, often used in contracts or negotiations.