Presented below is the income statement for Tiger Company. $\begin{array}{lr}
\text { Sales only credit sales) } & \$ 1,606.0 \
\text { Less: Cost of goods sold } & \underline{1,062.0} \
\text { Gross profit } & \$ 544.0 \
\text { Less: Operating expenses } & 322.0 \
\text { Operating income } & \$ 222.0 \
\text { Less other expense: Interest } & 9.6 \
\text { Income before tax } & \$ 212.4 \
\text { Less: Income tax expense } & 85.0 \
\text { Net income } & \$ 127.4
\end{array}$ The gross profit rate for Tiger Company is _____.
A)51.2%
B)13.8%
C)23.4%
D)33.9%

Question

Quizplus · Accepted Answer

The gross profit rate is calculated as (Gross Profit / Sales) * 100. Here, Gross Profit = $544.0 and Sales = $1,606.0. So, the gross profit rate = ($544.0 / $1,606.0) * 100 = 33.9%.

Presented Below Is the Income Statement for Tiger Company The Gross Profit Rate for Tiger Company Is _____