Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 37

For the following questions, circle the best respones.

Bublitz Company had net sales of $700,000 for fiscal 2010, cost of goods sold of $413,000, and interest expense amounting to $112,000. What would be the estimated gross profit for 2011 if sales were $800,000 as Bruce predicts or if sales were $1,100,000 as Rita predicts?

a. $200,000 or $275,000, respectively.

b. $275,000 or $575,000, respectively.

c. $328,000 or $451,000, respectively.

d. $387,000 or $687,000, respectively.

e. $472,000 or $649,000, respectively.