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24 May, 15:05

If a company's revenue is $530,000, profit before taxes is $98,000, and product costs are $390,000 then:a) The company's gross margin totals $98,000 b) The company's period costs total $140,000. c) The company's period costs cannot be determined d) The company's contribution margin totals $140,000 e) The company's gross margin totals $140,000

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  1. 24 May, 18:46
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    Answer: Option (e) is correct.

    Explanation:

    Given that,

    Company's revenue = $530,000

    Profit before taxes = $98,000

    Product costs = $390,000

    Company's gross margin = Company's revenue - Product costs

    = $530,000 - $390,000

    = $140,000

    Therefore, The company's gross margin totals $140,000.
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