During March 2020, Torres Company Generated Sales Revenues of $155,000

question 147

Multiple Choice

During March 2020, Torres Company generated sales revenues of $155,000. The company's sales returns and allowances were $25,000 and sales discounts were $5,000 Torres' expenses were as follows: cost of goods sold of $85,000, operating expenses of $35,000, interest expense of $3,000 and a gain on disposal of plant assets of $15,000. The company's income from operations for the month is

• A) $5,000.
• B) $32,000.
• C) $35,000.
• D) $47,000.

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Definitions:

Functional Structures

refers to an organizational layout where departments are grouped based on specialized functions such as marketing, finance, and production.

Cost Containment

Strategies and measures implemented by an organization to control or reduce its expenses, aiming to improve its financial efficiency.

Cooperation

The process of groups or individuals working together towards a common goal or benefit, often requiring communication and compromise.

Divisional Structure

An organizational format where operations are grouped based on distinct products or services, markets, or geographic areas, facilitating specialization and flexibility.