Refer to the Following Information to Answer the Question(s)regarding Anita

question 24

Multiple Choice

Refer to the following information to answer the question(s) regarding Anita Lupino's toy and game shop:
Anita Lupino is planning to open her own toy and game shop. She has conducted a great deal of research at the local library, contacted the industry trade association, and has set up a meeting with a consultant at the SBDC next week. Before she goes to the SBDC, she wants to sketch out an estimated income statement. She reviews the following data from RMA's Annual Statement Studies:
Cost of Goods Sold 57.3 percent of net sales
Operating Expenses 32.9 percent of net sales
Gross Profit 42.7 percent of net sales
-If Anita's research suggests that she can expect net sales of $475,000, what net profit could she expect?

• A)$202,825
• B)$46,550
• C)$69,350
• D)$156,275

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Definitions:

Equal Annual Deposits

Routine, consistent amounts of money deposited into an account or investment over a set period.

College Tuition

Refers to the amount of money charged by colleges or universities for instruction and other services.

Annuity Due

A type of annuity payment that is due at the beginning of each period, as opposed to at the end, which affects valuation and payment calculations.