Asked by Cristian Perez Lara on Jun 28, 2024

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A company has net sales of $752,000 and cost of goods sold of $543,000.Its net income is $17,530.The company's gross margin and operating expenses,respectively,are:

A) $209,000 and $191,470.
B) $191,470 and $209,000.
C) $525,470 and $227,000.
D) $227,000 and $525,470.
E) $734,000 and $191,470.

Gross Margin

Gross Margin is a company's revenue from sales minus its cost of goods sold, indicating the efficiency of its production process and pricing strategy.

Operating Expenses

Costs associated with running the day-to-day operations of a business, excluding the cost of goods sold.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's financial performance over a specific period.

  • Attain an understanding of the structure and segments of a sequential income statement.
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ME
manolo espanaJun 30, 2024
Final Answer :
A
Explanation :
Gross margin is calculated as net sales minus cost of goods sold, which is $752,000 - $543,000 = $209,000. Operating expenses are calculated by subtracting net income from gross margin, which is $209,000 - $17,530 = $191,470.