Financial Information Is Presented Below Gross Profit Would Be
A) $40,000

question 54

Multiple Choice

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

• A) $40,000.
• B) $43,000.
• C) $55,000.
• D) $52,000.

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Definitions:

Average Variable Cost

The total variable costs of production divided by the quantity of output produced, illustrating the per-unit variable cost.

Total Cost

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Labor Productivity

Total output divided by the quantity of labor employed to produce it; the average product of labor or output per hour of work.

Average Total Cost Curve

A graphical representation showing how the average total cost of producing a good changes as the quantity produced varies.