A Company Has Net Sales of $752,000 and Cost of Goods

question 105

Multiple Choice

A company has net sales of $752,000 and cost of goods sold of $543,000.Its net income is $17,530.The company's gross margin and operating expenses,respectively,are:

• A)$209,000 and $191,470
• B)$191,470 and $209,000
• C)$525,470 and $227,000
• D)$227,000 and $525,470
• E)$734,000 and $191,470

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Definitions:

Mailbox Rule

A legal principle stating that an offer is considered accepted once the acceptance is dispatched, not when it is received by the offeror.

Acceptance

In contract law, it refers to the act of agreeing to the terms of an offer, thereby creating a binding contract.

Valid Acceptance

An agreement to the terms of an offer in contract law, which results in a binding contract between the parties.

Valid Offer

A proposal made by one party to another intending to create a legally binding agreement that is specific, definitive, and capable of acceptance.