Question

What is the gross margin from the information​ provided?

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Part 1
A.$ 140 comma 000
B.$ 90 comma 000
C.$ 105 comma 000
D.$ 145 comma 000
Time Remaining: 00:51:56
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Information
Sales revenue
$480,000
Cost of goods sold
300,000
Sales discounts
20,000
Sales returns and allowances
15,000
Operating expenses
85,000
Interest revenue
5,000

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Answer 1

The gross margin is calculated by subtracting the cost of goods sold from net sales, which are sales revenue minus sales discounts and returns and allowances. From the information provided, the gross margin is $145,000. Therefore, the correct answer is $145,000 (Option D).

Step-by-step explanation:

The gross margin is calculated by subtracting the cost of goods sold (COGS) from sales revenue, after accounting for sales discounts and sales returns and allowances. To find the gross margin from the information provided, we need to follow these steps:

1. Subtract sales discounts and sales returns and allowances from the sales revenue to get the net sales.
2. Subtract the cost of goods sold from the net sales to get the gross margin.

Using the information provided:

• Sales revenue: $480,000
• Sales discounts: $20,000
• Sales returns and allowances: $15,000
• Cost of goods sold: $300,000

Now, let's calculate:

Net Sales = Sales revenue - Sales discounts - Sales returns and allowances
Net Sales = $480,000 - $20,000 - $15,000
Net Sales = $445,000

Gross Margin = Net Sales - Cost of goods sold
Gross Margin = $445,000 - $300,000
Gross Margin = $145,000

Therefore, the correct answer is $145,000 (Option D).