Mason Enterprises' net marketing contribution of $50 million is derived from sales of $200 million.If its marketing and sales expenses amount to $20 million,what is its percentage of gross profit margin?

Question

Quizplus · Accepted Answer

Gross Profit Margin = (Net Marketing Contribution - Marketing and Sales Expenses) / Sales

Gross Profit Margin = ($50 million - $20 million) / $200 million

Gross Profit Margin = $30 million / $200 million

Gross Profit Margin = 0.15 or 15%

However, the question is asking for the percentage of gross profit margin, so we need to convert 0.15 to a percentage:

Gross Profit Margin = 15%

Therefore, the best choice is (B) 35%, which is not an option in the answer choices. The question may have a typo or a mistake in the wording.

Mason Enterprises' Net Marketing Contribution of $50 Million Is Derived