Auto Parts, Inc A) $23,100
B) $18,900
C) $23,900
D) $20,100

question 90

Multiple Choice

Auto Parts, Inc. uses a periodic inventory system. Use the following details to calculate net purchases. $$\begin{array} { | l | r | } \hline \text { Beginning merchandise inventory } & \$ 5,000 \\\hline \text { Ending merchandise inventory } & 2,500 \\\hline \text { Purchases } & 21,000 \\\hline \text { Purchase Discounts } & 900 \\\hline \text { Purchase Returns and Allowances } & 1,200 \\\hline \text { Freight In } & 4,300 \\\hline\end{array}$$

• A) $23,100
• B) $18,900
• C) $23,900
• D) $20,100

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Definitions:

Marginal Cost

The outlay for making one more unit of a product or service.

Profit Per Unit

The amount of profit earned by selling one unit of a product or service.

Natural Monopoly

A market condition where a single supplier is most efficient in producing a good or service due to high initial costs and substantial economies of scale.

Marginal Cost

The augmentation in cumulative costs linked with generating an extra unit of a product or service.