Last Year, Lenny's Lemonade Had $3,500 in Sales, and Cost

question 20

Multiple Choice

Last year, Lenny's Lemonade had $3,500 in sales, and cost of goods sold was $2,000. Depreciation expenses totaled $500 and interest expense was $700. If the tax rate is 25%, what is the net profit margin for Lenny's Lemonade? What is its NOPAT margin?

• A) 6.43% and 21.43%
• B) 20.7% and 21.43%
• C) 2.14% and 32.14%
• D) 22.86% and 32.14%

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Definitions:

UCC Applies

Indicates that the Uniform Commercial Code, a comprehensive set of laws governing commercial transactions, is relevant to a particular legal issue.

Breach Of Contract

The failure to fulfill the terms of a contract without lawful excuse, which may lead to legal action.

Acceptance Of Offer

The action by which the recipient of an offer agrees to the terms of the offer, creating a legally binding contract between the parties.

International Sale Of Goods

Transactions involving the commercial exchange of goods between sellers and buyers from different countries, governed by international agreements and laws.