What Is the Relationship Between Gross Margin and Net Income

question 129

Multiple Choice

What is the relationship between gross margin and net income?

• A) Gross Margin - Merchandise Inventory at the end of the period = Net Income
• B) Gross Margin - Selling and Administrative Expenses = Net Income
• C) Gross Margin + Selling and Administrative Expenses = Net income
• D) Sales Revenue x Gross Margin Percentage = Net Income

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Definitions:

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