Nerrod Company sells its products at $500 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs:What is Nerrod's total sales-sustaining cost applicable to XBT as a customer?
A)$0.
B)$920.
C)$4,120.
D)$6,300.
E)$6,420.

Question

Nerrod Company sells its products at $500 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs:What is Nerrod's total sales-sustaining cost applicable to XBT as a customer?
A)$0. 
B)$920. 
C)$4,120. 
D)$6,300. 
E)$6,420.

Quizplus · Accepted Answer

The Answer of Nerrod Company sells its products at $500 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs:What is Nerrod's total sales-sustaining cost applicable to XBT as a customer?
A)$0. 
B)$920. 
C)$4,120. 
D)$6,300. 
E)$6,420.

Nerrod Company Sells Its Products at $500 Per Unit, Net