If a company has net sales of $250,000 and cost of goods sold of $175,000, the gross profit margin is
A) 70%.
B) 30%.
C) 15%.
D) 100%.

Name: If a company has net sales of $250,000 and cost of goods sold of $175,000, the gross profit margin is A) 70%. B) 30%. C) 15%. D) 100%.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

The gross profit margin is calculated as (Net Sales - Cost of Goods Sold) / Net Sales. So, ($250,000 - $175,000) / $250,000 = $75,000 / $250,000 = 0.30 or 30%.

If a Company Has Net Sales of $250,000 and Cost