Business Income Statements Answers

Bill owns a company (Bill's Gates) that manufactures fence panels. Bill's Gates had a gross profit margin last quarter of 33%. Which of the following actions would allow Bill to increase his gross profit margin this quarter, assuming he sells the same number of fence panels?a.Increase the price per panel.b.Decrease the price per panel.c.Spend more on labor and production.d.Spend less on labor and production.

At his comic book store, Korey's Comics, Korey sells approximately $3,250 in comic books each month. But as a comic book dealer, Korey only pays $1,285 for these comic books. Korey's monthly operating expenses, including labor, are $875. Calculate Korey's monthly gross profit.a.$1,090b.$1,965c.$2,375d.$2,840

Last month, Korey’s Comics had a gross profit of $4,370 and a net income of $3,500. Calculate Korey’s operating expenses for last month. a.$787b.$870c.$7,870d.$8,700

At Sam’s Swimming Pool Cleaning, Sam charges each of his 85 customers $25 per week for 52 weeks of service every year. Since pool cleaning is a service, it has no cost other than labor and supplies, which cost Sam $48,000 each year. Calculate Sam’s annual net income.a.$2,125b.$4,420c.$62,500d.$110,500

Last year, Rusty’s Tools experienced $67,550 in net sales, creating a gross profit of $50,338. If Rusty had a total operating expense of $35,200 last year, what was his net profit margin? a.22.4%b.52.1%c.74.5%d.79.0%

Korey?s Comics

Last month, Korey’s Comics had $4,350 in net sales with a gross profit of $3,320 and a net income of $1,850. Calculate Korey’s net profit margin.a.42.5%b.55.7%c.76.3%d.179.5%

Which of the following equations correctly describes how to calculate gross profit?a.gross profit = (net sales) - (cost of goods sold)b.gross profit = (cost of goods sold) - (net sales)c.gross profit = (net income) - (operating expenses)d.gross profit = (operating expenses) - (net income)

Sam's Swimming Pool Cleaning has a annual net income of $46,900. Sam charges $25 per week for each of his customers for 52 weeks. His annual operating expenses, including labor and supplies, are $48,000. How many customers does Sam's Swimming Pool Cleaning have?a.21b.38c.44d.73

Last month, Korey’s Comics had a gross profit of $2,385 with a monthly revenue of $3,465. Korey expects similar sales this month, but he would like to build up his in-store browsing selection, and purchases an additional assortment of comic books that costs him $625. The new assortment of comics will not arrive until next month. How does this transaction affect Korey’s gross profit for this month?a.This transaction will decrease Korey’s gross monthly profit by $625.b.This transaction will increase Korey’s gross monthly profit by $625.c.This transaction will decrease Korey’s gross monthly profit by $1,760.d.This transaction will increase Korey’s gross monthly profit by $1,760.