To produce chewing gum, DryFruit Gum Company pays $100,000 per year for rent on a long-term lease and $25 per kilogram for sorbitol and other ingredients. The firm pays zero taxes. These are the only costs associated with making DryFruit Gum. During the year, the firm sells 30,000 kilograms of chewing gum at $45 per kilogram. The net profit margin for DryFruit is closest to:

To produce chewing gum, DryFruit Gum Company pays $100,000 per year for rent on a long-term lease and $25 per kilogram for sorbitol and other ingredients. The firm pays zero taxes. These are the only costs associated with making DryFruit Gum. During the year, the firm sells 30,000 kilograms of chewing gum at $45 per kilogram. The net profit margin for DryFruit is closest to:

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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