Question

g 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

Answer 1

$ 330000

Step-by-step explanation:

Gross margin represent the amount of money remaining after the removal or subtraction of cost of product or services sold from its net sales \

Gross margin = ( total revenue - costs of good sold ) × 100

the sales in 2008 and 2009 were steady at $ 30 million dollar

the gross margin increased from 2.8% to 3.9 %

the amount the cost of sales reduced = ( $ 30 million × 0.039) - ( $ 30 million × 0.028) = $ 330000