Celestial Navigation Is a Store for People Who Collect Nautical

question 54

Multiple Choice

Celestial Navigation is a store for people who collect nautical items and use them to decorate their homes. Last year its net sales totalled $120,500. The value of the items it sold was $72,300. Taxes for the year ran $7,680. The only expenses that the operation has are (1) licenses for $300, (2) salaries to the owner and one part-time assistant for
$27,000, (3) administrative expenses of $500, and (4) utilities at $1,200. Calculate the net profit margin for Celestial Navigation.

• A) 60.2 percent
• B) 23.9 percent
• C) 40 percent
• D) 9.6 percent
• E) Cannot be determined from the information provided

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Definitions:

Slopes Fail

Instances where a slope collapses or slides due to gravitational pull and other factors like water saturation or seismic activity.

Rock Slide

A slab of relatively intact rock that detaches from bedrock and slides downhill, shattering as it moves.

Rotational Slide

A slide in which shearing takes place on a well-defined, curved shear surface, concave upward, producing a backward rotation in the displaced mass; synonymous with slump.

Debris Flow

A rapid movement of water-saturated rock, soil, and organic matter down slopes, capable of transporting large items due to its dense nature.