A Company Has Four Departments (A, B, C and D)

question 32

Multiple Choice

A company has four departments (A, B, C and D) and the net sales are $30,000; $35,000; $60,000 and $20,000 respectively. The cost of goods sold per department is $25,000; $15,000; $10,000 and $15,000 respectively. What department has the highest dollar gross profit?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Subrogation

The legal right for an insurer or third party to pursue a legal right or a claim against a wrongdoer on behalf of the insured party.

Expenditures

The act of spending or disbursing money, often related to business or government transactions.

Substantial Control

Significant influence or decision-making power over the management and operational policies of an entity, typically through ownership, contractual agreements, or other means.

Employee

An individual who is hired and paid by an employer to perform specific tasks or services.