Dolly's Diamonds reported Net Sales of $254,000, Cost of Goods Sold of $107,500, Operating Expenses of $60,400, and Income Tax Expense of $21,600. Dolly's gross profit margin percentage was: (Round your final answer to two decimal places, X.XX%.)
A)33.9%.
B)42.32%.
C)57.68%.
D)25.39%.

Question

Quizplus · Accepted Answer

Gross profit margin percentage is calculated as (Net Sales - Cost of Goods Sold) / Net Sales * 100. For Dolly's Diamonds, it is (($254,000 - $107,500) / $254,000) * 100 = 57.68%.

Dolly's Diamonds Reported Net Sales of $254,000, Cost of Goods