Reference: 06-09
Prater Company Has Provided the Following Data -The Best Estimate of the Company's Total Fixed Operating Expense

question 23

Multiple Choice

Reference: 06-09
Prater Company has provided the following data: $$\begin{array} { | l | l | l | } \hline & \text { This Year } & \text { Last Year } \\\hline \text { Units sold } & 300,000 & 250,000 \\\hline \text { Sales revenue } & \$ 1,300,000 & \$ 1,050,000 \\\hline \text { Less cost of goods sold } & 910,000 & 735,000 \\\hline \text { Gross margin } & 390,000 & 315,000 \\\hline \text { Less operating expenses } & 272,000 & 260,000 \\\hline \text { Net income } & \$ 118,000 & \$ 55,000 \\\hline\end{array}$$
-The best estimate of the company's total fixed operating expense per year is

• A)$188,000.
• B)$72,000.
• C)$200,000.
• D)$212,000.

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Definitions:

Marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Selling

The process of persuading or influencing a buyer to purchase a product or service, involving techniques to communicate the value and benefits to the customer.

Managerial Position

A job role that involves overseeing the work of others and making decisions related to the operation of a business or department.

Selling

The process of persuading or influencing a customer to purchase a product or service.