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

question 130

Multiple Choice

A company had net sales of $752,000 and cost of goods sold of $543,000.Its net income was $17,530.The company's gross margin ratio equals:

• A)18.9%
• B)24.5%
• C)27.8%
• D)34.7%
• E)35.2%

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Definitions:

Reasoning Errors

Mistakes or logical flaws in the process of drawing conclusions or making decisions.

Financial Decisions

Choices made by individuals or businesses regarding the management of money and assets.

Money Illusion

Money illusion occurs when people think of currency in nominal, rather than real, terms, failing to account for inflation's impact on purchasing power.

Real Buying Power

The amount of goods and services that can be purchased with a unit of currency, taking into account inflation to reflect the true value over time.