A company has net sales and cost of goods sold of $752,000 and $543,000,respectively.Its net income is $17,530.The company's gross margin and operating expenses are ________ and ____________,respectively.
A)$209,000; $191,470
B)$191,470; $209,000
C)$525,470; $227,000
D)$227,000; $525,470
E)$734,000; $191,470

Question

Quizplus · Accepted Answer

Gross Margin = Net Sales - Cost of Goods Sold; $752,000 - $543,000 = $209,000
Operating Expenses = Gross Margin - Net Income; $209,000 - $17,530 = $191,470

A Company Has Net Sales and Cost of Goods Sold