In 2009, an Agricultural Company Introduced a New Cropping Process

question 7

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 $30 million, but the gross margin increased from 2.8% to 3.9% between those years, by what amount was the cost of sales reduced?

• A) $330,000
• B) $660,000
• C) $264,000
• D) $462,000

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Definitions:

Terminating

The act of bringing something to an end or conclusion, often used in the context of contracts, employment, or processes.

Practice Budget

The financial plan for the operation of a medical practice, outlining the expected revenues and expenditures.

Revenues

Income generated from business activities or services before any expenses are deducted.

Expenses

Costs incurred in the operation of a business or the execution of a task.