Answer the Following Questions Using the Information Below -What Is the Gross Margin for 2015?
A) $163,000
B)

question 118

Multiple Choice

Answer the following questions using the information below:
$\begin{array}{lr}\text { Beginuing finished goods, 1/1/2015 } & \$ 92,000 \\\text { Ending finished goods, 12/31/2015 } & 75,000 \\\text { Cost of goods sold } & 300,000 \\\text { Sales revenue } & 450,000 \\\text { Operating expenses } & 95,000\end{array}$
-What is the gross margin for 2015?

• A) $163,000
• B) $177,000
• C) $170,000
• D) $167,000

---

Definitions:

Market Price

The current price at which a good or service can be bought or sold, determined by supply and demand.

Diminishing Returns

A rule in economics that asserts once investments in a specific sector reach beyond a certain threshold, the returns on those investments will not keep rising if all other factors stay unchanged.

Marginal Costs

The additional cost incurred by producing one extra unit of a product or service, crucial for understanding economic efficiency and pricing.

Variable Costs

Expenses that vary directly with the level of production or output.