Question

A company has net sales of $752000 and a cost of goods sold of $543000. its Net income is $ 17530. the company's gross margin and operating expenses, respectively, are:
a) $227000 and $525470
b) $191470 and $209000
c) $ 525470 and $227000
d)$209000 and $191470

Answer 1

The correct answer is d) $209,000 and $191,470.

Supporting calculations:

Net Sales	$752,000
Less: Cost of goods sold	($543,000)
Gross Margin	$209,000
Gross Margin	$209,000
Less: Net Income	($17,530)
Operating Expenses	$191,470

Therefore, the correct answer is $209,000 and $191,470.