Given the information below, determine this organization's gross profit margin: Net Sales Revenue $300,000 Cost of Goods Sold $150,000 Net Profit $20,000
Total Assets_$250,00

Question

Quizplus · Accepted Answer

The gross profit margin is calculated by subtracting the cost of goods sold from the net sales revenue and dividing the result by the net sales revenue. Using the information given, the gross profit margin would be ($300,000 - $150,000)/$300,000 = 50%. Therefore, the closest answer choice is C, which is 150%.

Given the Information Below, Determine This Organization's Gross Profit Margin