Gross profit on an intercompany sale of merchandise


The gross profit on an intercompany sale of merchandise costing $500,000 at a gross margin rate of 16 2/3% based on selling price is:

a) $100,000

b) $120,000

c) $200,000

d) $240,000

e) Some other amount

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Accounting Basics: Gross profit on an intercompany sale of merchandise
Reference No:- TGS062176

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