Carolina Company Has a Normal Markup of 40

question 27

Multiple Choice

Carolina Company has a normal markup of 40%.Its cost-to-sales ratio is

• A)71.4%.
• B)67.5%.
• C)60%.
• D)Cannot be calculated.

---

Definitions:

Sales Revenue

The revenue a company earns from selling products or delivering services.

Interest Expense

The sum an entity is liable for as a result of borrowing funds over a particular period.

Unearned Revenues

This reflects money received by a company for goods or services yet to be provided.

Retained Earnings

The portion of net income that is kept within the company rather than distributed to its shareholders as dividends.