Exhibit 5-2
The following is an income statement from the financial records of Peace, Love and Joy Company for the year ended December 31, 2015:
-Refer to Exhibit 5-2. Compute the gross profit margin for Peace, Love, and Joy Company.
A) 52%
B) 138%
C) 72.5%
D) 143%

Question

Exhibit 5-2
The following is an income statement from the financial records of Peace, Love and Joy Company for the year ended December 31, 2015: 
-Refer to Exhibit 5-2. Compute the gross profit margin for Peace, Love, and Joy Company.
A) 52% 
B) 138% 
C) 72.5% 
D) 143%

Quizplus · Accepted Answer

Gross profit margin is calculated as (Gross Profit / Net Sales) * 100. Assuming the values from Exhibit 5-2 (which are not provided in the question), and if the correct calculation leads to a gross profit margin of 72.5%, then option C is the correct answer.

Exhibit 5-2 The Following Is an Income Statement from the Financial Records