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What is the cost base of each vending machine for Judith Vending Company?

jboutdy

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Posts: 286

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6 years ago

What is the cost base of each vending machine for Judith Vending Company?

What is the cost base of each vending machine for Judith Vending Company?
A) $1,000
B) $950
C) $900
D) $850

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connorfitz

wrote...

#1

6 years ago

C
Explanation: C) Sales revenue = 1,200 units $1,000 = $1,200,000.
Cost base = [($1,200,000 $120,000) / 1,200] = $900.

jboutdy Author

wrote...

#2

6 years ago

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