If a company's revenue is $530,000, profit before taxes is $98,000, and product costs are $390,000 then: a)the company's gross margin totals $98,000 b)the company's period costs total $140,000. c)the company's period costs cannot be determined d)the company's contribution margin totals $140,000 e)the company's gross margin totals $140,000

Option (e) is correct.

Explanation:

Given that,

Company's revenue = $530,000

Profit before taxes = $98,000

Product costs = $390,000

Company's gross margin = Company's revenue - Product costs

                                          = $530,000 - $390,000

                                          = $140,000

Therefore, The company's gross margin totals $140,000.

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