The denominator in the gross margin percentage is:
A)net sales
B)net income
C)average inventory
D)cost of goods sold

Name: The denominator in the gross margin percentage is: A)net sales B)net income C)average inventory D)cost of goods sold
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Question

Quizplus · Accepted Answer

The gross margin percentage is calculated by taking the gross margin (net sales minus cost of goods sold) and dividing it by net sales. Therefore, the denominator in this calculation is net sales.

The Denominator in the Gross Margin Percentage Is