A Company with Net Sales of $500,000,a Beginning Balance of Net

question 6

Multiple Choice

A company with net sales of $500,000,a beginning balance of net receivables of $80,000,and an ending balance of net receivables of $90,000 has a collection period of:

• A) 197 days
• B) 62 days
• C) 54 days
• D) 6 days

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Definitions:

Marginal Revenue

The supplementary earnings obtained through the sale of an additional product or service unit.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.

Average Total Cost

The cost per unit of output, determined by dividing the overall production cost by the number of units produced.

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to market changes.