In Response to a Growing Trend of Workers Eating at Their

question 66

Multiple Choice

In response to a growing trend of workers eating at their work stations,OfficeEase,an Internet retailer,offers a line of products that can be used to protect office equipment and furniture including a plastic sheath for a computer keyboard and a spill-proof cup.Last year,its net sales were $1,450,000 with a cost of goods of $353,000.The company's expenses last year totaled $960,000.Calculate the company's net profit percentage.

• A)9.4 percent
• B)24.3 percent
• C)66.2 percent
• D)75.6 percent
• E)8.0 percent

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, representing the shareholders' equity on a per share basis.

Loss on Disposal

The financial loss incurred when the selling price of an asset is less than its carrying amount at the time of disposal.

Patent

An exclusive right issued by the U.S. Patent Office that enables the recipient to manufacture, sell, or otherwise control an invention for a period of 20 years from the date of the grant.

Amortized

The gradual reduction of a debt over a period of time through regular payments that cover both principal and interest.