Chapter's had net sales of $26,125 million.Its cost of goods sold was $16,022 million.Its profit was $997 million.Its gross profit ratio was
A)3.5%
B)67%
C)38.6%
D)5.2%
E)149.3%

Question

Quizplus · Accepted Answer

Gross profit is calculated as net sales minus cost of goods sold.

Gross profit = $26,125 million - $16,022 million = $10,103 million

Gross profit ratio is calculated by dividing gross profit by net sales and expressing it as a percentage.

Gross profit ratio = (Gross profit ÷ Net sales) x 100%

Gross profit ratio = ($10,103 million ÷ $26,125 million) x 100% = 38.6%

Therefore, the answer is choice C.

Chapter's Had Net Sales of $26,125 Million