Slotnick Chemical Received Customer Deposits on Returnable Containers in the Amount

question 106

Multiple Choice

Slotnick Chemical received customer deposits on returnable containers in the amount of $300,000 during 2013. Fifteen percent of the containers were not returned. The deposits are based on the container cost marked up 20%. How much profit did Slotnick realize on the forfeited deposits?

• A)$0.
• B)$7,500.
• C)$9,000.
• D)$45,000.

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Definitions:

Health Care Industry

An industry involved in delivering healthcare services, producing medical devices or pharmaceuticals, offering medical insurance, or engaging in activities that support the delivery of healthcare to individuals.

Highly Elastic

Describes a situation where a small change in price leads to a significant change in the quantity demanded or supplied.

Health Care

A broad term covering medical services, procedures, and support for individuals to maintain or improve their health.

Preferred Provider Organizations

A type of health insurance plan that offers a network of healthcare providers with whom costs are less than going outside the network.