Nu Company Reported the Following Data for Its First Year

question 14

Multiple Choice

Nu Company reported the following data for its first year of operations: What is Nu's gross profit ratio?
$$\begin{array} { | l | r | } \hline \text { Net sales } & \$ 2,800 \\\hline \text { Cost of goods sold } & 1,680 \\\hline \text { Operating expenses } & 880 \\\hline \text { Ending inventories } & 820 \\\hline\end{array}$$

• A)80%.
• B)49%.
• C)40%.

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Definitions:

Price Elasticity

A metric evaluating the sensitivity of the amount of a good purchased to price fluctuations.

Demand Curve

A graph showing the relationship between the price of a product and the quantity of the product that consumers are willing to purchase.

Price Elasticity

A measure reflecting how demand for a particular good shifts with adjustments in its pricing.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers at those prices, typically downward sloping.