The Following Information Pertains to Max Corporation What Is the Gross Profit Margin Earned by the Company

question 58

Multiple Choice

The following information pertains to Max Corporation: $$\begin{array} { l r } \text { Beginuning work-in-process inventory } & \$ 20,000 \\\text { Ending work-int-process inventory } & 23,000 \\\text { Beginuning finished goods inventory } & 36,000 \\\text { Ending finished goods inventory } & 34,000 \\\text { Cost of goods manufactured } & 246,000 \\\text { Sales } & 300,000\end{array}$$ What is the gross profit margin earned by the company?

• A) $52,000
• B) $50,000
• C) $48,500
• D) $53,500

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Definitions:

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its earnings before interest and taxes.

Creditors' Protection

Legal and financial mechanisms designed to safeguard the interests and rights of creditors, ensuring they receive payment owed to them.

Effective Interest Rate

The real rate of interest earned or paid on a loan or investment over a period, taking into account the effect of compounding.

Interest Expense

The cost incurred by an entity for borrowed funds, considered a non-operating expense on the income statement.