Financial information is presented below: $\begin{array}{lr}
\text { Operating expenses } & \$ 40,000 \
\text { Sales revenue } & 200,000 \
\text { Cost of goods sold } & 150,000
\end{array}$ The gross profit rate would be
A)$75.
B)$20
C)$05.
D)$25.

Question

Quizplus · Accepted Answer

Gross profit is calculated as Sales Revenue minus Cost of Goods Sold, which is $200,000 - $150,000 = $50,000. The gross profit rate is then calculated as (Gross Profit / Sales Revenue) * 100, which is ($50,000 / $200,000) * 100 = 25%.