If Hostell Company Has Net Sales of $500,000 and Cost

question 60

Multiple Choice

If Hostell Company has net sales of $500,000 and cost of goods sold of $325,000, Hostell's gross profit rate is

• A) 50%.
• B) 35%.
• C) 54%.
• D) 100%.

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Definitions:

Jury Duty

Jury Duty is a civic obligation requiring citizens to serve on juries during legal proceedings, contributing to the judgment process in trials.

Smelting Plant

is an industrial facility where metal ores are heated and melted to separate the metal from impurities, producing pure metal for various applications.

Tort

A violation of another person’s rights or a civil wrongdoing that does not arise out of a contract or statute; primary types are intentional, negligent, and strict-liability torts.

Damages

Monetary compensation awarded by a court to a person who has suffered loss or injury due to the unlawful act or omission of another.