THE FOLLOWING FINANCIAL INFORMATION IS PROVIDED FOR PEAK ELECTRONICS: DESCRIPTION AMOUNT OPERATING EXPENSES $40,000SALES RETURNS AND ALLOWANCES$6,000SALES DISCOUNTS $4,000SALES REVENUE $180,000COST OF GOODS SOLD$110,000 THE PROFIT MARGIN RATIO WOULD BE: A. 0.18 B. O. 11 c. 0.25 D. 0.35

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 19Q: The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and...
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Can you help me solve this financial accounting question using valid accounting techniques?

THE FOLLOWING FINANCIAL INFORMATION IS PROVIDED FOR
PEAK ELECTRONICS:
DESCRIPTION AMOUNT OPERATING
EXPENSES $40,000SALES RETURNS AND
ALLOWANCES$6,000SALES DISCOUNTS $4,000SALES
REVENUE $180,000COST OF GOODS SOLD$110,000
THE PROFIT MARGIN RATIO WOULD BE:
A. 0.18
B. O. 11
c. 0.25
D. 0.35
Transcribed Image Text:THE FOLLOWING FINANCIAL INFORMATION IS PROVIDED FOR PEAK ELECTRONICS: DESCRIPTION AMOUNT OPERATING EXPENSES $40,000SALES RETURNS AND ALLOWANCES$6,000SALES DISCOUNTS $4,000SALES REVENUE $180,000COST OF GOODS SOLD$110,000 THE PROFIT MARGIN RATIO WOULD BE: A. 0.18 B. O. 11 c. 0.25 D. 0.35
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