Use the Information Below to Answer the Following Questions

question 54

Multiple Choice

Use the information below to answer the following questions:
Holidays Ltd manufactures caravans. Transactions for the year ended 30 June 2012 were as follows:
(i) 1200 caravans were manufactured at a cost of $15 000 each.
(ii) 1000 caravans were sold for $20 000 each.
(iii) Cash was collected on 950 of the caravans sold.
-What was the reported profit for the year ended 30 June 2012 if revenue was recognised at the point of sale?

• A) $4 750 000
• B) $5 000 000
• C) $6 000 000
• D) $2 000 000.

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Definitions:

Microeconomic Analysis

The study of economic behavior of individuals, households and firms, focusing on the patterns of supply and demand and the price formation in markets.

Environmental Policy

Regulations and practices aimed at protecting the environment from harmful effects of human activities.

Fuel Efficiency Standards

Regulations set by governments to mandate the minimum level of fuel economy vehicles must achieve to reduce fuel consumption and emissions.

Real Cost

The total cost of producing a good or service, including both direct and indirect costs.