If Beginning Inventory Was $20 000, Total Purchases for the Period

question 10

Multiple Choice

If beginning inventory was $20 000, total purchases for the period were $80 000, freight-in was $4 000 and ending inventory was $45 000, the cost of sales for the period would be:

• A) $59 000
• B) $84 000
• C) $51 000
• D) $76 000

Understand and calculate the degree of operating leverage and its impact on net operating income.

Apply cost-volume-profit (CVP) analysis in mixed cost settings and understand the effect of sales mix changes on break-even points.

Interpret and apply the cost formula equation in the context of business decision-making.

Estimate fixed and variable components of mixed costs using the high-low method.