If a company has sales of $630,000, net sales of $600,000, and cost of goods sold of $360,000, the gross profit rate is

Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting the cost of goods sold from net sales, which in this case is $600,000 - $360,000 = $240,000. The gross profit rate is calculated by dividing the gross profit by net sales, which in this case is $240,000 ÷ $600,000 = 0.4, or 40%. Therefore, the best choice is C - 40%.

If a Company Has Sales of $630,000, Net Sales of $600,000