Use This Information to Answer the Following Question

question 138

Multiple Choice

Use this information to answer the following question. If the income statement were prepared in a multistep form,gross margin from sales would be

• A)$75,750.
• B)$72,000.
• C)$67,000.
• D)$82,000.

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Definitions:

Inventory Holding Cost

The total cost associated with storing and maintaining a company's inventory, including warehousing, insurance, taxes, and opportunity costs.

Overtime

Additional time worked by employees beyond the normal working hours, often compensated at a higher pay rate.

Aggregate Planning

An operational activity in which a company determines optimal levels of capacity, production, subcontracting, inventory, and labor to meet demand.

Capacity Levels

Refers to the maximum amount of work or production output that a facility can achieve under normal operating conditions.