A company's gross profit was $83,750 and its net sales were $347,800. Its gross margin ratio equals:
A) 4.2%.
B) 24.1%.
C) 75.9%.
D) $83,750.
E) $264,050.

Question

Quizplus · Accepted Answer

The gross margin ratio is calculated by dividing the gross profit by net sales and multiplying by 100. 
Gross margin ratio = (gross profit/net sales) x 100% 
= (83,750/347,800) x 100% 
= 24.1% 
Therefore, the answer is B.

A Company's Gross Profit Was $83,750 and Its Net Sales