Which of the Following Calculations Leads to Gross Margin Dollars

question 90

Multiple Choice

Which of the following calculations leads to gross margin dollars?

• A)subtract cost of goods sold from net sales
• B)add operating and interest expenses together and subtract the total from gross sales
• C)subtract cost of goods sold from gross sales
• D)add customer returns and customer allowances,then subtract the total from net sales
• E)subtract net profit from net sales

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Definitions:

Expense

An outflow of money or other resources, often categorized as operational or capital, incurred by a business in the process of earning revenue.

Room Rental Revenue

Income generated from the leasing or renting out of rooms, commonly seen in hotels, hostels, or rental properties.

Event Revenue

Income generated from organized events, such as concerts, conferences, or sports events, typically through ticket sales, sponsorships, and merchandise.

Event Expense

Event expense refers to the costs incurred in organizing, hosting, or participating in a specific event.