Use the Following Information for Questions 99 - 101

question 127

Multiple Choice

Use the following information for questions 99 - 101.
During 2014, Martin Corporation sold merchandise costing $3,500,000 on an installment basis for $5,000,000. The cash receipts related to these sales were collected as follows: 2014, $2,000,000; 2015, $1,750,000; 2016, $1,250,000.
-What is the rate of gross profit on the installment sales made by Martin Corporation during 2014?

• A) 30%
• B) 40%
• C) 60%
• D) 70%

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Definitions:

Manager Compensation

entails the payment and benefits received by a manager, including salary, bonuses, and incentives.

Quants

Professionals who specialize in quantitative analysis, often employed in finance to manage and model financial risks.

Cost Centers

Units or divisions within a business to which costs can be allocated for accounting and management purposes.

Divisional Manager

A divisional manager oversees a specific section or division within a larger organization, responsible for its performance, strategy, and management.