The Following Information Is Available from the Trial Balance of Valentines

question 6

Multiple Choice

The following information is available from the trial balance of Valentines company as at 31 Dec Year 3:
$$\begin{array} { l c c } & \text { Debit } & \text { Credit } \\& £ & £ \\\text { Sales revenue } & & 110,000\\\text { Inventory at 31st Dec Year 1 } & 7,000 \\\text { Purchases } & 18,750 &\end{array}$$
Closing inventory as at 31st Dec year 3 is £5,250.Calculate the gross profit.

• A) £141,000
• B) £79,000
• C) £89,500
• D) £130,500

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Definitions:

Purely Competitive

A market scenario where identical products are sold by many sellers, making it impossible for individual firms to influence market prices or conditions.

MRP

Stands for Marginal Revenue Product, which is the additional revenue generated by employing one more unit of a factor, such as labor or capital.

Marginal Resource Cost

It refers to the additional cost incurred by a firm when it uses one more unit of input.

MRP

Marginal Revenue Product, which is the additional revenue generated from employing one more unit of a resource, such as labor or capital.