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:

Gross Earnings

The total amount of money earned by an individual or entity before any deductions are made.

Seasonal Manufacturing

The production of goods in specific seasons of the year to meet seasonal demand.

Average Number

A value found by summing a set of numbers and then dividing by the count of numbers in the set.

Employees

Individuals who are hired by a business or organization to perform specific tasks in exchange for compensation.