A Firm Has the Following Financial Statement Data: Sales =

question 30

Multiple Choice

A firm has the following financial statement data: Sales = $1,000, COGS = $400, Operating Expenses = $200, and Taxes = $200. What is the firm's profit margin?

• A) 10%
• B) 20%
• C) 30%
• D) 40%
• E) 60%

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Definitions:

Damages

Monetary compensation awarded by a court to a person who has suffered loss or harm as a result of another's action or inaction.

Statutory Amount

A specific sum of money that is prescribed by statute or law for various purposes.

Extortion

A criminal offense in which a person obtains money, property, and/or services from another by wrongfully threatening or inflicting harm on the other’s person, property, or reputation. Also called blackmail.

Rescind

To rescind is to revoke, cancel, or repeal a contract, agreement, or law, effectively making it as if it never existed.