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

Name: Financial information is presented below: The gross profit rate would be
Brand: Quizplus
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Question

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

Quizplus · Accepted Answer

Gross profit rate is calculated by dividing gross profit by net sales. Therefore, the calculation would be:

Gross profit rate = (Net Sales - Cost of Goods Sold) / Net Sales
= (420,000 - 253,000) / 420,000
= 0.397 or 39.7%

The closest option to this calculation is B) 0.397 or 39.7%.

Financial Information Is Presented Below: the Gross Profit Rate