Thompson's 2009 gross profit ratio is:
A)25%.
B)19%.
C)20%.
D)None of these is correct.$84,000 $420,000 = 20%

Question

Quizplus · Accepted Answer

The gross profit ratio is calculated by dividing the gross profit by the net sales revenue and multiplying the result by 100. 
In this case, the gross profit is $84,000 and the net sales revenue is $420,000.
Gross Profit Ratio = (Gross Profit / Net Sales revenue) × 100. 
Hence, the gross profit ratio is (84,000 / 420,000) x 100 = 20%. Therefore, the correct answer is C.

Thompson's 2009 Gross Profit Ratio Is