Financial information is presented below: The gross profit rate would be

Question

Financial information is presented below:  The gross profit rate would be

Quizplus · Accepted Answer

Gross profit rate = Gross profit / Net sales
Gross profit = Net sales - Cost of goods sold
Gross profit rate = (Net sales - Cost of goods sold) / Net sales

From the given financial information, we can calculate:
Net sales = $250,000
Cost of goods sold = $136,500

Gross profit rate = ($250,000 - $136,500) / $250,000 = 0.454 or 45.4%

Therefore, the answer is A) .454.

Financial Information Is Presented Below: the Gross Profit Rate