Financial Information Is Presented Below: Operating Expenses $ 28,000

question 52

Multiple Choice

Financial information is presented below: Operating expenses $ 28,000
Sales returns and allowances 7,000
Sales discounts 3,000
Sales revenue 150,000
Cost of goods sold 98,000
The profit margin would be

• A).28.
• B).09.
• C).30.
• D).10.

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Definitions:

Fixed Costs

Expenses that do not change in proportion to the level of production or sales, such as rent, salaries, and insurance premiums.

Selling Price

The cost incurred by the customer for acquiring a product or service.

Variable Production Costs

Expenses that vary directly with the volume of production or sales, like direct labor and raw materials.

Fixed Monthly Cost

Regular expenses that do not fluctuate with production volume or sales, such as rent, salaries, and insurance, billed on a monthly basis.