5. Test Your Knowledge 1- A merchandising company: A. Eams net income by buying and selling merchandise B. Receives fees only in exchange for services C. Eams profit from commissions only. D. Earns profit from fares oaly 2- Cost of goods sold: A. Is another term for merchandise sales B. Is the term used for the cost of buying and preparing merchandise for sale C. Is another term for revenue D. Is also called gross margin 3. A company had expenses other than cost of goods sold of $51,000. Determine sales and gross profit given cost of goods sold was $25,000 and net income was $60,000. A. Sales: $136,000; Gross Profit: $111,000 B. Sales: \$136,000; Gross Profit: $85,000 C. Sales: $85,000; Gross Profit: $136,000 D. Sales: $111,000; Gross Profit: $136,000 5. Test Your Knowledge 1- A merchandising company: A. Eams net income by buying and selling merchandise B. Receives fees only in exchange for services C. Eams profit from commissions only. D. Earns profit from fares oaly 2- Cost of goods sold: A. Is another term for merchandise sales B. Is the term used for the cost of buying and preparing merchandise for sale C. Is another term for revenue D. Is also called gross margin 3. A company had expenses other than cost of goods sold of $51,000. Determine sales and gross profit given cost of goods sold was $25,000 and net income was $60,000. A. Sales: $136,000; Gross Profit: $111,000 B. Sales: \$136,000; Gross Profit: $85,000 C. Sales: $85,000; Gross Profit: $136,000 D. Sales: $111,000; Gross Profit: $136,000