On November 1,2012,Everett Janitorial Supply Sold Merchandise for $5,000,FOB Destination,2/10,n/30

question 75

Multiple Choice

On November 1,2012,Everett Janitorial Supply sold merchandise for $5,000,FOB destination,2/10,n/30.The merchandise cost $3,200.Everett paid transportation costs of $100.On November 6,2012,merchandise of $1,000 from the November 1 sale was returned.The returned merchandise had cost $600.Everett received payment for the balance of the sale on November 10,2012.
-If this were the only sales transaction of the period,what amount of Gross profit would be shown on the income statement?

• A) $2,400
• B) $1,800
• C) $1,320
• D) $3,920

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Definitions:

Cartel Members

Individuals or entities part of an agreement among competing firms to control prices, limit output, or divide markets, often to maximize collective profits.

Price Effect

The impact on consumer demand and producer supply as a result of a change in the price of a good or service.

HHI

The Herfindahl-Hirschman Index, a measure of market concentration used to determine the level of competition within an industry.

Merger

The combination of two or more companies into a single entity, typically to leverage synergies or improve competitiveness.