Multiple Choice
Which of the following is typically included as a factor in a start-up cost estimate when calculating net sales?
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4. Merchandising Operations
Net Sales
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If Amanda's total sales are \$40, and she has sales returns and allowances of \$5 and sales discounts of \$3, what is her net sales?
A
\$35
B
\$32
C
\$40
D
\$37
Verified step by step guidance1
Step 1: Understand the concept of net sales. Net sales are calculated by subtracting sales returns, allowances, and discounts from total sales.
Step 2: Identify the given values in the problem. Amanda's total sales are \$40, sales returns and allowances are \$5, and sales discounts are \$3.
Step 3: Write the formula for net sales: Net Sales = Total Sales - Sales Returns and Allowances - Sales Discounts.
Step 4: Substitute the given values into the formula: Net Sales = \$40 - \$5 - \$3.
Step 5: Perform the subtraction step by step to find the net sales. First subtract \$5 from \$40, then subtract \$3 from the result.
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