James Company reported a quarterly income before tax of negative seven million, five hundred dollars and nineteen cents. Write the digits of the reported gross margin.

Question

Quizplus · Accepted Answer

Gross margin is the revenue minus the cost of goods sold. It is not affected by the income tax expenses. As the income before tax is negative, the gross margin would also be negative. Option C is the only negative number and has the correct digits.

James Company Reported a Quarterly Income Before Tax of Negative