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

question 9

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 administrative expense percentage?

• A) 15%
• B) 16%
• C) 17%
• D) 19%

---

Definitions:

Protruding

Extending out or projecting in space.

Punitive Damages

Financial compensation awarded in a lawsuit that exceeds simple compensation and is intended to punish the defendant for egregious conduct.

Product Liability

The legal obligation of manufacturers and sellers to compensate for losses or injuries caused by defects or malfunctions of their products.

Implied Warranties

Legal assurances that are not explicitly stated but are assumed in transactions, such as the assumption that goods are of merchantable quality.