Katz Group Had the Following Income Statement for the Month

question 112

Multiple Choice

Katz Group had the following income statement for the month of May.
$\begin{array}{l}\text { Sales revenue } &&\$428,000\\\text { Cost of goods sold } &&205,440\\\text { Gross margin }&&222,560\\\text { Less: }\\&\text { Selling expenses }&81,320\\&\text { Administrative expenses }&72,760\\\text { Operating income }&&\$68,480\end{array}$
-Refer to the Figure.What was the administrative expense percentage?

• A)15%
• B)16%
• C)17%
• D)19%

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Definitions:

Product Life Cycle

The stages a product goes through from development and introduction to the market, through growth, maturity, and eventual decline.

Marketing Mix

A framework consisting of the 4Ps: Product, Price, Place, and Promotion, used by businesses to market their products effectively.

Industry

Refers to a group of companies producing similar products or services that are in competition with each other.

Experience Curve Effects

Experience curve effects refer to the reduction in per-unit production costs that occur over time due to increased efficiency, learning, and improvements in technology.