Last Year, Lenny's Lemonade Had $3,500 in Sales, and Cost

question 52

Multiple Choice

Last year, Lenny's Lemonade had $3,500 in sales, and cost of goods sold was $2,000. Depreciation expenses totaled $500, and interest expense was $700. If the tax rate is 25%, what is the net profit margin for Lenny's Lemonade?

• A)6.43%
• B)20.70%
• C)2.14%
• D)22.86%

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Definitions:

Convergence Theory

A theory that suggests collective action and social movements arise from individuals with similar issues, ideas, or desires naturally coming together.

Collective Movements

implies coordinated group actions or social movements aimed at achieving a common goal or addressing a shared issue.

Collectives

Groups or assemblies of individuals coming together with a common interest or purpose, often lacking a fixed structure.

Physical Location

The specific geographic or spatial position of an object, person, or event.