If Gross Profit Is $540,000, Interest Expense Is $200,000, Sales

question 38

Multiple Choice

If gross profit is $540,000, interest expense is $200,000, sales is $1,800,000 and total assets are $5,400,000, calculate the gross profit margin.

• A) 18.9%
• B) 30%
• C) 10%
• D) 6.3%

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Definitions:

Expansion

The process of a business or economy growing and increasing its production and activities.

Records

Documents, files, or electronic data that provide evidence of activities, transactions, or decisions, or can refer to vinyl discs used for playing music.

Business Cycle

The fluctuation in economic activity that an economy experiences over a period, characterized by periods of expansion and contraction.

Troughs

The low points in the economic cycle, characterized by reduced economic activity and lower levels of production and employment.