A company had net sales of $340,500, its cost of goods sold was $257,000, and its net income was $13,750. The company's gross margin ratio equals 24.5%.
Gross Margin Ratio = (Sales - Cost of Goods Sold)/Sales
Gross Margin Ratio = ($340,500 - $257,000)/$340,500 = 24.5%

Question

Quizplus · Accepted Answer

The calculation of the gross margin ratio is correct and the value obtained is equal to 24.5%, which is provided in the question. Therefore, the answer is true.

A Company Had Net Sales of $340,500, Its Cost of Goods