Crabapples,Inc What Is the Cost Per Box of Dry Fruits If

question 188

Multiple Choice

Crabapples,Inc.purchases and sells boxes of dried fruit.The following information summarizes its operating activities for the year: $$\begin{array} { | l | r | } \hline \text { Selling Expenses } & \$ 9,800 \\\hline \text { Merchandise Inventory on December 31 } & 34,000 \\\hline \text { Merchandise Inventory on January 1 } & 46,200 \\\hline \text { Purchases of merchandise } & 84,000 \\\hline \text { Rent for store } & 12,900 \\\hline \text { Sales commissions } & 7,400 \\\hline \text { Sales revenue } & 161,500 \\\hline\end{array}$$
What is the cost per box of dry fruits if Crabapples sold 4,000 boxes of dry fruit during the year? (Round your answer to the nearest cent.)

• A) $8.50
• B) $40.38
• C) $32.55
• D) $24.05

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Definitions:

Demand Curve

Represents a graph showing the relationship between the price of a good and the quantity demanded by consumers at those prices, usually downward sloping.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a ratio.

Monopolistic

Referring to a market structure in which there is only one producer/seller for a product or service, or very few, leading to limited competition.

Gray Marketing

The legal, but unofficial, distribution of products through channels not authorized by the original manufacturer or trademark owner.