QUESTION 13

The Seashell Factory sells beach goods to tourists. The following information summarizes the company's operating expenses for the year:

Cost of goods sold	$108,000
Marketing	$2000
Rent and utilities	$12,600
Salaries and wages	$12,800
Sales revenues	$170,100

What is gross profit?

		$34,700
		$62,100
		$89,500
		$142,700

QUESTION 14

Sneider Family Orange Groves processes a variety of fresh juices. The company has the following expenses for July:

Depreciation expense on bottling machines	$63,300
Glass juice bottles	$60,900
Commissions for salespeople	$30,600
Salaries of nutrition researchers	$75,900
Costs of maintaining website used for customer orders	$4500
Wages of factory workers	$75,800
Freshness seals/caps for juice bottles	$3200
Reconfiguring the factory layout	$122,800
Customer help line	$5200
Costs of refrigerated trucks used to deliver juice	$25,500

What is the total cost for the research and development category of the value chain?

		$75,900
		$46,900
		$198,700
		$81,100