Katz Group had the following income statement for the month of May.
$\begin{array}{l}
\text { Sales revenue } &&\$428,000\
\text { Cost of goods sold } &&205,440\
\text { Gross margin }&&222,560\\text { Less: }\
&\text { Selling expenses }&81,320\&\text { Administrative expenses }&72,760\
\text { Operating income }&&\$68,480
\end{array}$
-Refer to the Figure.What was the gross margin percentage?
A)17%
B)19%
C)48%
D)52%

Question

Katz Group had the following income statement for the month of May.
 $\begin{array}{l}
\text { Sales revenue } &&\$428,000\
\text { Cost of goods sold } &&205,440\
\text { Gross margin }&&222,560\\text { Less: }\
&\text { Selling expenses }&81,320\&\text { Administrative expenses }&72,760\
\text { Operating income }&&\$68,480
\end{array}$
-Refer to the Figure.What was the gross margin percentage?
A)17%
B)19%
C)48%
D)52%

Quizplus · Accepted Answer

The gross margin percentage is calculated as (Gross Margin / Sales Revenue) * 100 = (222,560 / 428,000) * 100 = 52%.

Katz Group Had the Following Income Statement for the Month