Refer to the Following Information to Answer the Question(s)regarding Anita

question 24

Multiple Choice

Refer to the following information to answer the question(s) regarding Anita Lupino's toy and game shop:
Anita Lupino is planning to open her own toy and game shop. She has conducted a great deal of research at the local library, contacted the industry trade association, and has set up a meeting with a consultant at the SBDC next week. Before she goes to the SBDC, she wants to sketch out an estimated income statement. She reviews the following data from RMA's Annual Statement Studies:
Cost of Goods Sold 57.3 percent of net sales
Operating Expenses 32.9 percent of net sales
Gross Profit 42.7 percent of net sales
-If Anita's research suggests that she can expect net sales of $475,000, what net profit could she expect?

• A)$202,825
• B)$46,550
• C)$69,350
• D)$156,275

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Definitions:

Net Benefit

The total positive results or gains received from a decision or action after subtracting all costs associated with that decision or action.

Rational Decisions

The process of making choices that result in the optimal level of benefit or utility for an individual.

Advertising

The activity or profession of producing advertisements for commercial products or services, aiming to influence consumer behavior.

Behavioral Economics

explores how psychological, cognitive, emotional, cultural, and social factors affect economic decisions, challenging traditional economic theories that assume rational behavior.