In 2009, an Agricultural Company Introduced a New Cropping Process

Multiple Choice

In 2009, an agricultural company introduced a new cropping process which reduced the cost of growing some of its crops. If sales in 2008 and 2009 were steady at $25 million, but the gross margin increased from 2.3% to 3.4% between those years, by what amount was the cost of sales reduced?

A) $575 000
B) $325 000
C) $275 000
D) $425 000