MINI-CASE
The operating income of Carbon Footwear is $10 million.Its net marketing contribution is derived from sales of $80 million and the marketing and sales expenses amount to $15 million.The general and administrative expenses and other operating expenses amount to $20 million.
-Mini-Case Question.Calculate the percent gross profit generated by Carbon Footwear.

Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting the cost of goods sold from revenue. As we do not have this information, we can use the net marketing contribution as a proxy for revenue. The net marketing contribution is $80 million - $15 million = $65 million. 
The gross profit is therefore $65 million - $10 million = $55 million. 
The percent gross profit is calculated by dividing the gross profit by revenue and multiplying by 100. 
Percent gross profit = ($55 million ÷ $80 million) x 100% = 68.75%
Therefore, none of the answer choices are correct. However, if we assume that the net marketing contribution is equivalent to revenue, the closest answer choice would be D, 56.25%.

MINI-CASE The Operating Income of Carbon Footwear Is $10 Million.Its Net