A Retail Chain Sells 100 Designer Sheet Sets for $199

question 10

Multiple Choice

A retail chain sells 100 designer sheet sets for $199.99 a set; these sheet sets cost the company $69.95 a set to buy.The company also sells 1,000 basic sheet sets for $49.99 a set; these sheet sets cost the company $24.99 to buy.Other operating expenses total $10,000.Which of the following statements is true?

• A)The company's net income is $38,004.
• B)Rounded to the nearest whole number,the gross profit percentage is 65% on the designer sheets and 50% on the basic sheets.
• C)The company's gross profit is $28,004.
• D)All of the above.

---

Definitions:

Subliminal Messages

Messages transmitted in a way that is designed to pass below the normal limits of perception, often used in advertising to influence consumer behavior unconsciously.

Selective Perception

The process by which individuals perceive what they want to in media messages while ignoring opposing viewpoints, often based on their background, experiences, and biases.

Selective Exposure

The tendency of individuals to preferentially seek out and pay attention to information that conforms to their pre-existing beliefs and values, while avoiding contradicting information.

Federal Trade Commission

An independent agency of the United States government, established to promote consumer protection and eliminate and prevent anticompetitive business practices.