If Cost of Goods Sold Is $360,000 and the Gross

question 93

Multiple Choice

If cost of goods sold is $360,000 and the gross profit rate is 40%,what is the gross profit?

• A)$240,000
• B)$360,000
• C)$600,000
• D)$900,000

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Definitions:

Treasury Bill

A short-term government security issued at a discount from par value and paying no interest, maturing in a year or less.

Simple Interest

Interest calculated only on the principal amount, without compounding on accumulated interest.

Selling Price

The amount of money for which a product or service is sold to customers.

Revolving Line of Credit

A credit facility extended by a financial institution to a customer that allows the customer to borrow up to a certain limit, pay down the balance, and then borrow again.