In 2015,an agricultural company introduced a new cropping process which reduced the cost of growing some of its crops.If sales in 2014 and 2015 were steady at $25 million,but the gross margin increased from 2.3% to 3.4% between those years,by what amount was the cost of sales reduced?
A)$275,000
B)$325,000
C)$425,000
D)$575,000
E)$850,000

Question

Quizplus · Accepted Answer

The gross margin increase from 2.3% to 3.4% represents a 1.1% increase on $25 million in sales, which equals $275,000.

In 2015,an Agricultural Company Introduced a New Cropping Process Which