A world traveler prepares to leave the comforts of home for a back to nature visit to Gilligan's Island, where all transactions are conducted in coconuts and the banking system is completely undeveloped
The traveler can buy coconuts for $2 each before the journey. If he fails to bring enough coconuts with him and runs out, he must get some coconuts flown in at a cost of $5 each. If he finishes his vacation and has leftover coconuts he can cash them in when he returns home, but will receive only $1.50 per coconut. What is his loss per unit if he overstocks on coconuts prior to leaving home?
A) $0.50
B) $1
C) $3.50
D) $4.50
A
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Vertical analysis of comparative financial statements includes the
A) development of common-size statements. B) calculation of dollar amount changes and percentage changes from the previous to the current year. C) use of an index number. D) All of these choices.
As the economy becomes more and more depressed, a company's management decides to slash spending on research and development. What is the likely effect of this action on net income? Net income will be
a. higher this period and lower in future periods. b. higher this period and higher in future periods. c. lower this period and higher in future periods. d. lower this period and lower in future periods.
Consider the data on Inventory of Widgets Over a 10-Day Period. Any time that ending inventory falls to 15 or below, an order is placed for 20 units of the product. The lead time for delivery varies and is shown in the column under Lead Time. If the inventory costs are $8 per widget per day, what are the total inventory costs during the 10-day period?
a. $115
b. $8
c. $920
d. $928
A gym offers one-year memberships for $99 and requires customers to pay the full amount of cash at the beginning of the membership period. For the gym, this is an example of a(n):
A. Prepaid expense. B. Accrued expense. C. Deferred revenue. D. Accrued revenue.