Financial Information Is Presented Below The Gross Profit Rate Would Be
A)

question 137

Multiple Choice

Financial information is presented below: $$\begin{array} { l r } \text { Operating expenses } & \$ 35,000 \\\text { Sales returns and allowances } & 12,000 \\\text { Sales discounts } & 3,000 \\\text { Sales revenue } & 140,000 \\\text { Cost of goods sold } & 85,000\end{array}$$ The gross profit rate would be

• A) .68.
• B) .39.
• C) .32.
• D) .34.

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Definitions:

Accounting Profits

The net income reported on the financial statements of a company, calculated as total revenues minus explicit costs and depreciation.

Industry Supply

The total quantity of a specific good or service that all firms in an industry are willing to sell at a given price level.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified time period.

Marginal Revenue

The additional revenue that a firm generates from selling one more unit of a good or service.