Collins Computers Stored Its Inventory in a Warehouse That Was

question 27

Multiple Choice

Collins Computers stored its inventory in a warehouse that was destroyed by a fire in late November,2014.Its sales office was at a different location.In order to file a claim with the insurance company,the company's manager asks you to estimate the inventory in the warehouse.The following information is available: The company's gross profit has historically been 40% of Net sales revenue.Estimate the value of the inventory destroyed in the fire using the gross profit method.

• A)$369,950
• B)$528,550
• C)$410,000
• D)$388,450

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Definitions:

Competition Act

Laws designed to avoid monopolistic behaviors in the market to guarantee fair play among competitors.

Offence

An offence is a violation of law or rule, constituting an act that is forbidden by statute or is considered morally wrong or objectionable.

Restrictive Trade Practices

Business activities that limit or control competition in the market, often scrutinized under anti-trust laws.

Competition Act

Legislation aimed at preventing anti-competitive practices in the marketplace, ensuring fair competition among businesses.