The following data is from the income statement of Ralston Company: What is the company's gross margin percentage?

Question

The following data is from the income statement of Ralston Company:  What is the company's gross margin percentage?

Quizplus · Accepted Answer

Gross margin percentage is calculated by dividing gross profit by total revenue and multiplying by 100. In this case, the gross profit is $300,000 and the total revenue is $500,000. So, the gross margin percentage is (300,000/500,000) x 100 = 60%. Therefore, the correct answer is C.

The Following Data Is from the Income Statement of Ralston