822 Recently Purchased Books Were Randomly Selected from All Recent

question 102

Multiple Choice

822 recently purchased books were randomly selected from all recent book purchases over the Internet. The chart below shows the breakdown of the classification of the book type. What percentage of the books in the sample were in the top two categories?

• A) 22.99
• B) 20.44
• C) 4.50
• D) 43.43
• E) 0.4343

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Definitions:

Gross Margin

A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. It indicates the efficiency with which a company uses its materials and labor to produce and sell products profitably.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Manufacturing Margin

The difference between the sales revenue generated from manufactured goods and the cost of goods sold (COGS) associated with producing those goods.

Variable Costing

A method of accounting that encompasses only the variable costs of production, such as direct materials, direct labor, and variable overhead, in the computation of product costs.