Whispering company lost most of its inventory in a fire in december just before the year-end physical inventory was taken. the corporation’s books disclosed the following. beginning inventory $172,400 sales revenue $671,100 purchases for the year 389,000 sales returns 23,900 purchase returns 28,600 rate of gross profit on net sales 30 % merchandise with a selling price of $20,100 remained undamaged after the fire. damaged merchandise with an original selling price of $15,200 had a net realizable value of $5,600.

Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. how will this decision affect the firm? a. the firm will be protected against the principal-agent problem. b. the firm's administrative costs will be low because of necessary bureaucracy. c. the firm will have more flexibility in purchasing and comparing prices of goods and services. d. the firm will have high-powered incentives, such as hourly wages and salaries.