American Importers Reports Net Income of $60,000 and Cost of Goods

question 13

Multiple Choice

American Importers reports net income of $60,000 and cost of goods sold of $540,000.If the company's gross profit rate was 40%, net sales were

• A)$900,000.
• B)$1,350,000.
• C)$1,410,000.
• D)$990,000.

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Definitions:

Multiply

The process of increasing in number, especially the mathematical operation of adding a number to itself a certain number of times.

Encapsulated

Surrounded by a protective layer or capsule, often referring to the way certain bacteria or benign tumors are contained.

Cachexia

A complex syndrome associated with severe weight loss, muscle wasting, and overall weakness, often seen in patients with chronic illnesses.

Immunotherapy

A treatment that uses certain parts of a person’s immune system to fight diseases such as cancer by boosting the body's natural defenses or by making synthetic immune system proteins.