Given the Following Information, Calculate the Firm's NET PROFIT (Or

question 66

Multiple Choice

Given the following information, calculate the firm's NET PROFIT (or LOSS) . $$\begin{array} { l l } \text { Returns and allowances } & \$ 60,000 \\\text { Gross sales } & \$ 460,000 \\\text { Cost of sales } & \$ 200,000 \\\text { Expenses } & \$ 100,000 \\\text { Gross margin } & \$ 200,000\end{array}$$

• A) $85,000
• B) $100,000
• C) $50,000
• D) $160,000
• E) a loss of $200,000

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Definitions:

Substitutes

Goods or services that can replace each other in use, where an increase in the price of one leads to an increase in demand for the other.

Inferior Good

A type of good for which demand decreases as the income of consumers increases.

Demand Curve

A diagram that shows how the quantity of a product demanded by buyers changes according to its price.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at various prices.