Katz Group
Katz Group Had the Following Income Statement for the Month

question 100

Multiple Choice

Katz Group
Katz Group had the following income statement for the month of May. $\begin{array}{lr}\text { Sales revenue } & \$ 428,000 \\\text { Cost of goods sold } & 205,440 \\\text { Gross margin } & 222,560\\\text { Less: }\\\text { Selling expenses } & 81,32 0\\\text { Administrative expenses } & 72,760\\\text { Operating income }&\$68,480\end{array}$
-Refer to Katz Group. What was the selling expense percentage?

• A) 15%
• B) 16%
• C) 17%
• D) 19%

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Definitions:

Misrepresentation

A false statement of fact made by one party to another, which induces the latter to enter into a contract or agreement.

Expert

An individual with specialized knowledge or skills in a particular area, often called upon to give opinions or advice.

Rescission

The legal cancellation of a contract, which may release all involved parties from their contractual obligations.

Damages

Monetary compensation awarded by a court to a party who has suffered loss or harm due to the wrongful act or negligence of another.