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Clayton Systems is a company that provides business-to-business products and services, generating over $3 billion in annual revenues. The following question pertains to Clayton Systems
Clayton Systems is a company that provides business-to-business products and services, generating over $3 billion in annual revenues. The following question pertains to Clayton Systems Financial Statements from fiscal years 2012 and 2013. Clayton reports revenues and cost of goods sold (COGS) from its products and services divisions in breakout line items on the income statement. Assuming that gross margin - the ratio of gross profits to revenue - is roughly equal across all of Clayton's products, how much did it cost for Clayton to produce a product sold at a price of $2,000 in fiscal year 2013? (Hint: Calculate the gross margin for the products division by itself.) OA) $7.65 OB) $92.35 OC) $152.94 OD) $1,847.06
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