hane Co. has sales of $11.5 million and cost of sales of $5.6 million. Its selling, general and administrative expenses are $550,000 and its research and development is $1.3 million. It has annual depreciation charges of $1.4 million and a tax rate of 35%. a. What is Local's gross margin? (ans

hane Co. has sales of $11.5 million and cost of sales of $5.6 million. Its selling, general and administrative expenses are $550,000 and its research and development is $1.3 million. It has annual depreciation charges of $1.4 million and a tax rate of 35%. a. What is Local's gross margin? (ans

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Shane Co. has sales of $11.5 million and cost of sales of $5.6 million. Its selling, general
and administrative expenses are $550,000 and its research and development is $1.3
million. It has annual depreciation charges of $1.4 million and a tax rate of 35%.

a. What is Local's gross margin? (answer in %, Round to one decimal place.)

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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