In 2010, Lake Would Recognize Realized Gross Profit Of

question 48

Multiple Choice

In 2010, Lake would recognize realized gross profit of:

• A)$ 0.
• B)$450,000.
• C)$310,000.
• D)$700,000.2008 sales: Gross profit % = ($900,000 $450,000)/$900,000 = 50%
• 50% $300,000 received in 2010 = $150,000
• 2009 sales:
• Gross profit % = ($1,500,000 $900,000)/$1,500,000 = 40%
• 40% $400,000 received in 2010 = $160,000
• Total: $150,000 + $160,000 = $310,000

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Definitions:

Supply

The total amount of a specific good or service that is available to consumers, often influenced by factors such as price, production costs, and market demand.

Demand

The desire of purchasers, consumers, clients, or agents for a particular good or service, backed by the ability and willingness to pay a price.

Modernist Painters

Artists who were part of the modernism movement, known for their departure from traditional styles and experimentation with new techniques around the late 19th and early 20th centuries.

Demand Function

A mathematical representation of the relationship between the quantity of a good that consumers are willing to buy and its price.