If Hostell Company has net sales of $500,000 and cost of goods sold of $325,000, Hostell's gross profit rate is
A) 50%.
B) 35%.
C) 54%.
D) 100%.

Name: If Hostell Company has net sales of $500,000 and cost of goods sold of $325,000, Hostell's gross profit rate is A) 50%. B) 35%. C) 54%. D) 100%.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Gross profit rate is calculated as (Net Sales - Cost of Goods Sold) / Net Sales. Here, it is ($500,000 - $325,000) / $500,000 = $175,000 / $500,000 = 0.35 or 35%.

If Hostell Company Has Net Sales of $500,000 and Cost