In response to a growing trend of workers eating at their work stations, OfficeEase, an Internet retailer, offers a line of products that can be used to protect office equipment and furniture, including a plastic sheath for a computer keyboard and a spill-proof cup. Last year, its net sales were $1,450,000 with cost of goods sold for $353,000. The company's expenses last year totaled $960,000. Calculate the company's net profit percentage.
A) 9.4 percent
B) 24.3 percent
C) 66.2 percent
D) 75.6 percent
E) 8.0 percent

Question

Quizplus · Accepted Answer

Gross Margin = Net Sales ? Cost of Goods Sold = $1,450,000 ? $353,000 = $1,097,000.
Net Profit = Gross Margin ? Expenses = $1,097,000 ? $960,000 = $137,000.
Net Profit Percentage = (Net Profit/Net Sales) * 100 = ($137,000/$1,450,000) * 100 = 9.4 percent.

In Response to a Growing Trend of Workers Eating at Their