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

A Company Has Net Sales and Cost of Goods Sold