Becky's Bovine Specials Has a Net Income of $345, Operating

question 61

Multiple Choice

Becky's Bovine Specials has a net income of $345, operating income of $305, sales of $678, and total assets of $245. Which of the following is the net profit margin for her business?

• A) 0.361
• B) 0.450
• C) 0.508
• D) 0.884

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Definitions:

Lost Sales

The potential revenue that a company misses out on due to being out of stock, having insufficient capacity, or other reasons for not fulfilling customer demand.

Quantity Discounts

Price reductions applied to bulk purchases, incentivizing buyers to increase the volume of their purchase.

Annual Carrying Costs

The total expenses associated with holding or storing inventory over a year, including costs related to storage, insurance, and obsolescence.

Ordering Costs

Expenses associated with making an order for goods or services, including administrative costs, shipping charges, and time spent on ordering processes.