A company's gross profit was $83,750 and its net sales were $347,800. Its gross margin ratio equals:
A) 24.1%.
B) $264,050.
C) 75.9%.
D) 4.2%.
E) $83,750.

Name: A company's gross profit was $83,750 and its net sales were $347,800. Its gross margin ratio equals: A) 24.1%. B) $264,050. C) 75.9%. D) 4.2%. E) $83,750.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The gross margin ratio is calculated by dividing the gross profit by net sales and then multiplying by 100. ($83,750 / $347,800) * 100 = 24.1%.

A Company's Gross Profit Was $83,750 and Its Net Sales