The Following Data Have Been Provided by a Retailer That

question 90

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 variable operating expenses per unit?

• A) $0.24 per unit.
• B) $0.71 per unit.
• C) $0.90 per unit.
• D) $4.17 per unit.

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Definitions:

Contradictory Goals

Objectives within an organization or project that are at odds with each other, making it difficult or impossible to achieve them simultaneously.

Holding Period

The duration of time an investment is held by an investor, impacting tax treatment and investment strategy.

Second Stage

The second stage usually refers to an intermediate or development phase in a process, project, or lifecycle, where initial foundations have been built upon but final objectives are not yet reached.

Management

The process of dealing with or controlling things or people, including planning, organizing, leading, and controlling resources to achieve organizational goals.