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:

Associated Services

The nonphysical attributes of the product including product warranties, financing, product support, and after-sale service.

Product Lines

Groups of associated items, such as those that consumers use together or think of as part of a group of similar products.

Product Mix

The total range of products a company offers to its customers to buy.

University

An institution of higher education and research which awards academic degrees in various disciplines.