Question

A merchandising business paid $2,100 to purchase inventory and $500 to have the inventory delivered to its customers. Its product costs were $2,600. What is the total cost of the inventory including the delivery charges?

1) $2,100
2) $2,600
3) $2,500
4) $3,100

Answer 1

The total cost of the inventory, including the delivery charges for the merchandising business, is the sum of the purchase cost ($2,100) and the delivery charges ($500), resulting in a total of $2,600.

Step-by-step explanation:

The total cost of the inventory including delivery charges for the merchandising business is the sum of the purchase cost of the inventory and the delivery charges. The company paid $2,100 for the inventory and an additional $500 to have the inventory delivered. Therefore, the total cost of the inventory would be the sum of these two amounts.

$2,100 (purchase cost) + $500 (delivery charges) = $2,600.

Hence, the correct answer is option 2) $2,600. This represents the product costs, which include both the cost of buying the inventory and the costs associated with getting it to the customers.