In 2009, an agricultural company introduced a new cropping process which reduced the cost of growing some of its crops. If sales in 2008 and 2009 were steady at $30 million, but the gross margin increased from 2.8% to 3.9% between those years, by what amount was the cost of sales reduced?
A) $330,000
B) $660,000
C) $264,000
D) $462,000

Question

Quizplus · Accepted Answer

A) [($30 × 3.9%) - ($20 × 2.8%)] × 1,000,000 = $330,000

In 2009, an Agricultural Company Introduced a New Cropping Process