Henricks Company has the following information available:
$\begin{array}{ll}
\text { Revencie }&\$500,000\
\text { Variable production costs }&\$100,000\
\text { Fixed production costs }&\$100,000\
\text { Variable selling costs } & \$ 50,000 \
\text { Fixed selling costs } & \$ 50,000
\end{array}$
What is the gross margin and net income?
A) $200,000; $200,000
B) $250,000; $150,000
C) $300,000; $200,000
D) $400,000: $200,000

Question

Quizplus · Accepted Answer

Gross margin is calculated as Revenue minus Variable and Fixed production costs. Net income is calculated as Gross margin minus Variable and Fixed selling costs.

Henricks Company Has the Following Information Available What Is the Gross Margin and Net Income? A) $200,000;

Henricks Company Has the Following Information Available What Is the Gross Margin and Net Income?
A) $200,000;