A company had net sales of $752,000 and cost of goods sold of $543,000.Its net income was $17,530.The company's gross margin ratio equals:
A)18.9%
B)24.5%
C)27.8%
D)34.7%
E)35.2%

Question

Quizplus · Accepted Answer

The gross margin ratio is calculated as (Net Sales - Cost of Goods Sold) / Net Sales. Here, it is ($752,000 - $543,000) / $752,000 = $209,000 / $752,000 = 0.2777 or 27.8%.

A Company Had Net Sales of $752,000 and Cost of Goods