The Following Data Have Been Provided by a Retailer That

question 67

Multiple Choice

The following data have been provided by a retailer that sells a single product:
$\begin{array}{|l|r|r|}\hline & \text { This Year } & \text { Last Year } \\\hline \text { Units Sold } & 200,000 & 150,000 \\\hline \text { Sales Revenue } & \$ 1,000,000 & \$ 1750,000 \\\hline \text { Less: Cost of Goods Sold } & \underline{700,000} & \underline{\mathbf{5 2 5 , 0 0 0}} \\\hline \text { Gross Margin } & 300,000 & 225,000 \\\hline \text { Less: Operating Expenses } & \underline{222,000} & \underline{\mathbf{2 1 0 , 0 0 0}} \\\hline \text { Operating Income } & \underline{\$ 78,000} & \underline{\$ 15,000} \\\hline\end{array}$


-What is the best estimate of the company's total fixed operating expenses per year?

• A) $0.
• B) $44,000.
• C) $80,000.
• D) $174,000.

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Definitions:

Administrative Law

The body of law created by administrative agencies in order to carry out their duties and responsibilities.

Regulatory Environment

The system of rules and norms governing the conduct of businesses and organizations, enforced by governmental agencies.

Legal Ramifications

Consequences or legal outcomes that result from actions, especially in the context of breaking the law or in lawsuits.

Federal Agency Regulations

Rules and standards set by federal agencies that govern the practices and procedures of businesses and organizations.