An Electronics Retailer Has Yearly Sales of $1,000,000; Its Beginning-Of-Year

question 45

Multiple Choice

An electronics retailer has yearly sales of $1,000,000; its beginning-of-year inventory (at cost) is $400,000 and its ending inventory (at cost) is $410,000.The retailer's annual purchases are $700,000 and transportation charges equal $25,000.The retailer's gross profit equals ________.

• A) $225,000
• B) $285,000
• C) $325,000
• D) $350,000

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