The Following Data Have Been Provided by a Retailer That

question 67

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 total fixed operating expenses per year?

• A) $0.
• B) $44,000.
• C) $80,000.
• D) $174,000.

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Definitions:

Systematic Oversight

Systematic oversight involves organized and consistent monitoring and evaluation of a process, system, or organization to ensure compliance with standards and to improve efficiency and effectiveness.

Prison Conditions

The set of circumstances affecting the environment within a prison, including facilities, treatment of inmates, and overall living quality.

Operations

Refers to the day-to-day activities and procedures companies or organizations carry out to fulfill their functions and achieve their objectives.

Complex Rules

Set of guidelines or principles that are intricate and detailed, often requiring careful study or expertise to understand fully.