Sleep Sack had net sales of $650,500,its cost of goods sold was $357,000,and its profit was $13,750.The gross margin ratio was 45.1%.

Question

Quizplus · Accepted Answer

Gross margin ratio = (Net sales - Cost of goods sold) / Net sales * 100

Plugging in the given values, we get:

Gross margin ratio = (650500 - 357000) / 650500 * 100
                   = 293500 / 650500 * 100
                   = 45.1%

Therefore, the statement is true.

Sleep Sack Had Net Sales of $650,500,its Cost of Goods