Snow Sales Ltd.'s net sales were $856,600.Its cost of goods sold was $226,810.Its profit was $33,750.Its gross profit ratio was

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Quizplus · Accepted Answer

The gross profit ratio is calculated by subtracting the cost of goods sold from net sales, dividing the result by net sales, and then multiplying by 100 to get a percentage. Gross profit = Net sales - Cost of goods sold = $856,600 - $226,810 = $629,790. Gross profit ratio = ($629,790 / $856,600) * 100 = 73.5%.