If a Company Has Sales of $630,000, Net Sales of $600,000

question 171

Multiple Choice

If a company has sales of $630,000, net sales of $600,000, and cost of goods sold of $360,000, the gross profit rate is

• A) 62%.
• B) 60%
• C) 40%.
• D) 38%.

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Definitions:

Opportunity Cost

Overlooking potential gains available from different alternatives by settling on one choice.

Muffin

A small, baked good often sweetened and sometimes containing fruits, nuts, or chocolate, typically enjoyed as a snack or quick breakfast.

Absolute Advantage

The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.

Radios

Electronic devices for receiving radio waves and converting them into sound or other signals.