Compute the gross profit rate when net sales are $350,000 and gross profits are $189,000.
A)51:10
B)54%
C)51%
D)54:10

Name: Compute the gross profit rate when net sales are $350,000 and gross profits are $189,000. A)51:10 B)54% C)51% D)54:10
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Question

Quizplus · Accepted Answer

Gross profit rate is calculated by dividing gross profits by net sales and multiplying by 100 to get a percentage. 
Gross profit rate = (Gross profits / Net sales) x 100% 
= ($189,000 / $350,000) x 100% 
= 54% 
Therefore, the answer is choice B.

Compute the Gross Profit Rate When Net Sales Are $350,000