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

Question

Quizplus · Accepted Answer

Gross margin is calculated as net sales minus cost of goods sold, which is $752,000 - $543,000 = $209,000. Operating expenses are calculated as gross margin minus net income, which is $209,000 - $17,530 = $191,470.

A Company Has Net Sales of $752,000 and Cost of Goods