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1.Confectioners, a chain of candy stores, purchases its candy in bulk from its suppliers. For a recent shipment, the company paid $2900 and received 7300

1.Confectioners, a chain of candy stores, purchases its candy in bulk from its suppliers. For a recent shipment, the company paid $2900 and received 7300 pieces of candy that are allocated among three groups.

Group 1 consists of 2170 pieces that are expected to sell for $0.15 each.

Group 2 consists of 4840 pieces that are expected to sell for $0.33 each.

Group 3 consists of 290 pieces that are expected to sell for $0.69 each.

Using the relative sales value method, what is the cost per item in Group 1?

a.$0.21.

b.$0.45.

c.$0.94.

d.$0.40.

2. Oriole Corporation, a manufacturer of Mexican foods, contracted in 2020 to purchase 1100 pounds of a spice mixture at $4.10 per pound, delivery to be made in spring of 2021. By 12/31/20, the price per pound of the spice mixture had dropped to $3.80 per pound. In 2020, Oriole should recognize

a

a loss of $330.00.

b

a gain of $330.00.

c

a loss of $4510.00.

d

no gain or loss

3. Pharoah Corp. has annual sales totaling $1218000 and an average gross profit of 20% of cost. What is the dollar amount of the gross profit?

a

$203000.

b

$304500.

c

$182700.

d

$243600.

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