Answer the Following Questions Using the Information Below -What Is Gross Margin for 2018?
A)$527 000
B)$243 000

question 120

Multiple Choice

Answer the following questions using the information below:
$\begin{array}{|lr|}\hline \text { Beginning finished goods, } 1 / 1 / 2018 & \$ 40,000 \\\hline \text { Ending finished goods, } 12 / 31 / 2018 & 33,000 \\\hline \text { Cost of goods sold } & 250000 \\\hline \text { Sales revenue } & 600,000 \\\hline \text { Operating expenses } & 120,000 \\\hline\end{array}$
-What is gross margin for 2018?

• A)$527 000
• B)$243 000
• C)$357 000
• D)$350 000

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Definitions:

Utility Maximization

An economic principle that suggests consumers aim to get the greatest satisfaction possible from their available resources.

Consumer's First

A philosophy or policy placing consumer interests and satisfaction at the forefront of business decision-making.

Marginal Utility-To-Price Ratio

The comparison of the additional satisfaction received from consuming one more unit of a good to the price of that unit, used to maximize utility.

Utility Maximization

The concept in economics that individuals or households will attempt to get the greatest satisfaction possible from their available resources.