Using the Information Below, Calculate Gross Profit for the Period

question 49

Multiple Choice

Using the information below, calculate gross profit for the period: $\begin{array}{lr}\text { Sales revenues for the period } & \$ 1,304,000 \\\text { Operating expenses for the period } & 239,000 \\\text { Finished Goods Inventory, January 1 } & 36,000 \\\text { Finished Goods Inventory, December 31 } & 41,000 \\\text { Cost of goods manufactured for the period } & 540,000\end{array}$

• A) $774,000.
• B) $769,000.
• C) $530,000.
• D) $535,000.
• E) $448,000.

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Definitions:

Wholly Owned

A company or entity that is 100% owned by another company or individual.

Vertical Boycott

An anti-competitive practice where companies at different supply chain levels agree not to deal with a particular company or group.

Sherman Act

A landmark federal statute in the anti-trust law of the United States that prohibits monopolistic practices and promotes competition.

Price-Cutter

An individual or company that significantly reduces the prices of goods or services, typically to attract more customers or to outcompete rivals.