TNR Is Preparing Its Budgeted Income Statement for the Month

question 35

Multiple Choice

TNR is preparing its budgeted income statement for the month of August. Budgeted sales are $18,000. Cost of goods sold is twice the amount of operating costs, and operating costs plus cost of goods sold equals 40% of net profit. Return on sales (net profit / sales) is anticipated to be 50%. TNR's budgeted gross margin is

• A) $3,600
• B) $15,600
• C) $14,400
• D) None of the above

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Definitions:

Self-Managed Team

A group of employees who are given the autonomy to plan, execute, and monitor their work, often with little direct supervision.

Social Club

An organized group of people with common interests, activities, or purposes, that meets regularly for social interaction.

Strategic Objectives

are high-level goals aligned with an organization's mission and vision, focusing on long-term success and competitive advantage.

Self-Managed Team

A group in which members collaboratively oversee their work and the functioning of the team, without relying on external supervision.