Revenue Is $400,000 and Cost of Goods Sold Is $100,000

question 93

Multiple Choice

Revenue is $400,000 and Cost of goods sold is $100,000.How much is the gross profit percent?

• A) 75%
• B) 25%
• C) 60%
• D) 40%

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Definitions:

Floatation Costs

The comprehensive expenses involved in releasing new securities, encompassing fees for underwriting, legal services, and registration.

Firm Commitment

An underwriting agreement in which an underwriter agrees to buy all the unsold shares in an initial public offering (IPO).

Underwriter

A person or institution that assesses and accepts the risk on investments, insurance, or securities, often by buying or guaranteeing them.

Direct Costs

Direct costs are expenses directly tied to the production of a product or service, such as raw materials and labor.