A Retail Store Prices Its Goods to Achieve a Gross

question 26

Multiple Choice

A retail store prices its goods to achieve a gross margin of 35 percent.Up to the date of a fire that destroyed the store's inventory,sales were $250,000 and cost of goods available for sale was $175,000.The estimated cost of the inventory destroyed is

• A)$12,500.
• B)$43,750.
• C)$62,500.
• D)$75,000.

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Definitions:

Inferior Technology

Technology that is less efficient or effective compared to the available alternatives.

Production Possibilities Frontier

A curve depicting the maximum feasible combinations of two or more goods or services an economy can produce when all resources are fully and efficiently utilized.

Circular-flow Diagram

A Circular-Flow Diagram represents an economic model visually demonstrating the movement of money through markets between households and companies.

Financial Assets

Assets that are paper claims on some return or income, such as stocks, bonds, or bank deposits.