A company has net sales of $825,000 and cost of goods sold of $547,000.Its net income is $98,500.The company's gross margin and operating expenses,respectively,are:
A)$209,000 and $191,470
B)$278,000 and $179,500
C)$278,000 and $98,500
D)$179,500 and $98,500
E)$645,500 and $179,500

Question

Quizplus · Accepted Answer

Gross margin is calculated as net sales minus cost of goods sold, which is $825,000 - $547,000 = $278,000. Operating expenses are calculated as gross margin minus net income, which is $278,000 - $98,500 = $179,500.

A Company Has Net Sales of $825,000 and Cost of Goods