Use the Information Below to Answer the Following Questions That

question 112

Multiple Choice

Use the information below to answer the following questions that refer to Table B-2. Based on the information in Table B-2, the markdown ratio is:
$$\begin{array} { l c } { \text { Table B-2 } } & \\\text { Gross sales } & \$ 240,000 \\\text { Returns } & \$ 20,000 \\\text { Allowances } & \$ 20,000 \\\text { Gross margin } & 25 \% \\\text { Beginning inventory } & \$ 50,000 \\\text { Ending inventory } & \$ 50,000 \\\text { Expenses } & \$ 40,000 \\\text { Markdowns } & \$ 30,000 \\\text { Investment } & \$ 50,000\end{array}$$

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Definitions:

Intercropping

An agricultural practice that involves growing two or more crops in proximity for purposes such as pest control, pollination, and to increase productivity.

Alfalfa

A leguminous plant with clover-like leaves and bluish flowers, widely grown as forage for cattle and as a nitrogen-fixing crop, enriching soil fertility.

Subsistence Agriculture

Farming practices aimed at self-sufficiency, producing enough food for the farmer's family, with little to no surplus for trade.