Question
income statement date sales revenue 50,000 prudction cost 26,000 delivery costs 1600 marketing cost 8500 administrative expense 2000 operating profit 14400 net interest 750 income
income statement date
sales revenue 50,000
prudction cost 26,000
delivery costs 1600
marketing cost 8500
administrative expense 2000
operating profit 14400
net interest 750
income before taxes 13650
taxes 4095
net income 9555
based on the above data, which of the following is false
A. production costs are 53% of revenue, thus resulting in a gross profit margin of 47%
B. administrative expense are 4% of revenue
C. net inerest cost are 1.5% of revenue
D. delivery cost are 2.8% of revenue and represent the company's smallest cost component
E. marketing cost are 17% revenue
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started