In 2009, an Agricultural Company Introduced a New Cropping Process

question 24

Multiple Choice

In 2009, an agricultural company introduced a new cropping process which reduced the cost of growing some of its crops. If sales in 2008 and 2009 were steady at $25 million, but the gross margin increased from 2.3% to 3.4% between those years, by what amount was the cost of sales reduced?

• A)$575 000
• B)$325 000
• C)$275 000
• D)$425 000

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Definitions:

Dow Jones Industrial Average

A stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.

Fixed-Income Market

This market encompasses investments that pay a fixed return over a period, such as government and corporate bonds.

Treasury Debt

Government-issued bonds to finance government spending, considered low-risk investments.

Mortgage-Backed

Mortgage-backed refers to securities that are secured or backed by mortgage loans, allowing investors to receive payments derived from the principal and interest payments made by borrowers.