Financial information is presented below: Operating Expenses $\quad \$ 65,000$
Sales Revenue $\quad \quad \quad 220,000$
Cost of Goods Sold $\quad 138,000$ The gross profit rate would be
A) .077.
B) .400.
C) .627.
D) .923.

Question

Quizplus · Accepted Answer

The gross profit rate is calculated as (Sales Revenue - Cost of Goods Sold) / Sales Revenue. Here, it's ($220,000 - $138,000) / $220,000 = $82,000 / $220,000 = 0.3727, which rounds to 0.4 or 40%, making option B correct.

Financial Information Is Presented Below: Operating Expenses $65,000\quad \$ 65,000$65,000 Sales Revenue

Financial Information Is Presented Below: Operating Expenses $\quad \$ 65,000$ Sales Revenue