Calculate gross proﬁt margin given the following information: sales = $1,200; cost of goods sold = $450; general and administrative costs = $150.
A) 0.385
B) 0.50
C) 0.625
D) 0.75
E) 0.875

Question

Quizplus · Accepted Answer

Gross profit margin is calculated as (Sales - Cost of Goods Sold) / Sales. Here, it is ($1,200 - $450) / $1,200 = $750 / $1,200 = 0.625.

Calculate Gross Proﬁt Margin Given the Following Information: Sales =