A Retail Store Prices Its Goods to Achieve a Gross

question 3

Multiple Choice

A retail store prices its goods to achieve a gross margin of 30 percent.Up to the date of a fire that destroyed the store's inventory,sales were $400,000 and cost of goods available for sale was $300,000.The estimated cost of the inventory destroyed is

• A) $20,000.
• B) $70,000.
• C) $120,000.
• D) $100,000.

---

Definitions:

Natural Resource

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.