Use the Following Information for the Next 4 Questions

question 126

Multiple Choice

Use the following information for the next 4 questions.
TNR Corporation is preparing its budgeted income statement for the month of August. Budgeted sales are $18,000. Cost of goods sold is twice the amount of operating costs, and operating costs plus cost of goods sold equals 40% of net income. Return on sales (net income / sales) is anticipated to be 50%. TNR does not have any nonoperating items on its income statement.
-TNR's budgeted gross margin is

• A) $3,600
• B) $15,600
• C) $14,400
• D) None of the above

---

Definitions:

Method of Inclusion

A specific approach or criteria used to determine what is considered in a calculation or consideration.

Method of Exclusion

A strategy used to prevent certain groups or individuals from accessing a service, market, or opportunity.

Right-to-Work Laws

Legislation that guarantees workers the right to work for any employer without the requirement to join a union or pay union dues.

Union Shops

Workplaces where employment is conditional on maintaining membership in a labor union, typically after a probationary period.