Answer the Following Questions Using the Information Below:
the Following

question 236

Multiple Choice

Answer the following questions using the information below:
The following information pertains to Bondi Creations:
$\begin{array}{ll}\hline & \\\hline \text { Manufacturing costs } & \$ 1,500,000 \\\hline \text { Units manufactured } & 30,000 \\\hline \text { Units sold } & 29,500 \text { units sold for } \$ 85 \text { per unit } \\\hline \text { Beginning inventory } & 0 \text { units } \\\hline\\\hline\end{array}$
-What is the amount of gross margin?

• A)$2 507 500
• B)$1 500 000
• C)$1 475 000
• D)$1 032 500

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Definitions:

Carrying Cost

The total cost of holding inventory, including storage, insurance, taxes, and opportunity costs, over a certain period.

Credit

An arrangement wherein a borrower receives something of value now and agrees to repay the lender at a later date, usually with interest.

Graphically

Refers to representing data or models visually using graphs or charts.

Spread

Compensation to the underwriter, determined by the difference between the underwriter’s buying price and offering price. Also, the gap between the interest rate a bank pays on deposits and the rate it charges on loans.