A Company's Net Sales Revenues Are $1,000,000

question 113

Multiple Choice

A company's net sales revenues are $1,000,000.Its cost of goods sold is $400,000.Which of the following is its gross profit percentage?

• A) 40%
• B) 60%
• C) 167%
• D) 250%

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Definitions:

Warranty

A guarantee provided by the seller or manufacturer concerning the condition of its product, promising to repair or replace it if necessary within a certain period.

Incidental Damages

Compensation for unforeseen damages that occur as a secondary effect of a breach of contract.

Resell

The act of selling an item or asset previously bought, typically for profit.

Public Sale

An auction or sale of goods or assets that is open to the general public and conducted by a legal or governmental authority.