A Company Shows the Following Balances What Is the Gross Profit Rate?
A) 34%
B) 46

question 85

Multiple Choice

A company shows the following balances: $$\begin{array} { l r } \text { Sales Revenue } & \$ 2,500,000 \\\text { Sales Returns and Allowances } & 400,000 \\\text { Sales Discounts } & 50,000 \\\text { Cost of Goods Sold } & 1,353,000\end{array}$$ What is the gross profit rate?

• A) 34%
• B) 46%
• C) 66%
• D) 54%

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Definitions:

401k Plan

A retirement savings plan sponsored by an employer allowing employees to save and invest a portion of their paycheck before taxes are taken out.

Take Home

The net amount of income that an individual actually receives after all deductions, such as taxes and social security contributions.

Taxable Bond Portfolio

A collection of bonds whose interest payments are subject to federal and possibly state income taxes.

Roth Retirement Plan

A type of retirement savings plan allowing taxable withdrawals to be made tax-free, provided certain conditions are met.