Chapter's had net sales of $26,125 million. Its cost of goods sold was $16,022 million. Its profit was $997 million. Its gross profit ratio was:
A) 67%.
B) 3.5%.
C) 149.3%.
D) 5.2%.
E) 38.6%.

Question

Quizplus · Accepted Answer

The gross profit ratio is calculated as (Net Sales - Cost of Goods Sold) / Net Sales. Here, it is ($26,125 million - $16,022 million) / $26,125 million = $10,103 million / $26,125 million = 0.386 or 38.6%.

Chapter's Had Net Sales of $26,125 Million