A Company Has Net Sales and Cost of Goods Sold

question 89

Multiple Choice

A company has net sales and cost of goods sold of $825,000 and $547,000, respectively. Its net income is $98,500. The company's gross margin and total other expenses are ________ and ___________, respectively.

• A) $209,000; $191,470
• B) $278,000; $179,500
• C) $278,000; $98,500
• D) $179,500; $98,500
• E) $645,500; $179,500

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Definitions:

Total Revenue

The gross revenue from selling products or services before deducting any costs.

Fixed Cost

Expenditures that do not change with the level of production or sales, such as rent, salaries, and insurance.

Total Cost

the complete cost of production including both fixed and variable costs.

Maximize Profit

A strategy or goal where a firm seeks to achieve the highest possible profit through its operations and decision-making.