A company had net sales and cost of goods sold of $752,000 and $543,000, respectively. Its net income was $17,530. The company's gross margin ratio equals:

A) 18.9%
B) 24.5%
C) 27.8%
D) 34.7%
E) 35.2%

Question

A company had net sales and cost of goods sold of $752,000 and $543,000, respectively. Its net income was $17,530. The company's gross margin ratio equals:A)  18.9%B)  24.5%C)  27.8%D)  34.7%E)  35.2%

Caleb Mabins · Accepted Answer

Final Answer : C, Explanation :  Gross margin = Net sales - Cost of goods soldGross margin ratio = (Gross margin / Net sales) x 100%Gross margin = $752,000 - $543,000 = $209,000Gross margin ratio = ($209,000 / $752,000) x 100% = 27.8%Therefore, the correct answer is (C) 27.8%.

A company had net sales and cost of goods sold of $752,000 and $543,000, respectively. Its net income was $17,530. The company's gross margin ratio equals:

A) 18.9%
B) 24.5%
C) 27.8%
D) 34.7%
E) 35.2%

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