Use This Information to Answer the Following Question

question 132

Multiple Choice

Use this information to answer the following question.
-Assuming that the specific identification method is used and that ending inventory consists of 15 units from each of the three purchases and five units from the January 1 inventory,cost of goods sold is

• A)$221.
• B)$418.
• C)$338.
• D)$445.

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Definitions:

Complements

Goods or services that are used together, where an increase in demand for one leads to an increase in demand for the other.

Income Elasticity

A measure of how much the demand for a good or service changes in response to a change in consumers’ income.

Normal Good

A type of good for which demand increases as consumer income rises, and decreases as consumer income falls.

Income Elasticity

Income elasticity of demand measures how much the quantity demanded of a good changes as consumer income changes.