A company has net sales of $825,000 and cost of goods sold of $547,000. Its net income is $98,500. The company's gross margin and operating expenses, respectively, are:
A) $209,000 and $191,470
B) $278,000 and $179,500
C) $278,000 and $98,500
D) $179,500 and $98,500
E) $645,500 and $179,500
B) $278,000 and $179,500
Explanation: Gross Margin = Net Sales – Cost of Goods Sold; $825,000 $547,000=$278,000
Operating Expenses = Gross Margin – Net Income; $278,000 – $98,500 = $179,500
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