Multiple Choice
Which of the following best describes how net sales are calculated on the income statement?
8
views
4. Merchandising Operations
Net Sales
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
If 4 cans of coffee cost \$2.40, what is the cost of \( \frac{1}{4} \) of a can of coffee?
A
\$0.15
B
\$0.25
C
\$2.40
D
\$0.60
Verified step by step guidance1
Determine the cost of one can of coffee by dividing the total cost of 4 cans by 4. Use the formula: \( \text{Cost of one can} = \frac{\text{Total cost of 4 cans}}{4} \).
Substitute the given total cost of 4 cans (\$2.40) into the formula: \( \text{Cost of one can} = \frac{2.40}{4} \).
Next, calculate the cost of \( \frac{1}{4} \) of a can by dividing the cost of one can by 4. Use the formula: \( \text{Cost of } \frac{1}{4} \text{ of a can} = \frac{\text{Cost of one can}}{4} \).
Substitute the cost of one can (calculated in step 2) into the formula: \( \text{Cost of } \frac{1}{4} \text{ of a can} = \frac{\text{Result from step 2}}{4} \).
Compare the calculated cost of \( \frac{1}{4} \) of a can with the provided answer choices (\$0.15, \$0.25, \$2.40, \$0.60) to identify the correct answer.
9:04mWatch next
Master Net Sales:Sales Discounts (Gross Method) with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
