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 a cost of goods of $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 = $1,097,000Net Profit = Gross Margin - Expenses = $1,097,000 - $960,000 = $137,000Net Profit Percentage = Net Profit/Net Sales = $137,000/$1,450,000 = 9.4 percent

In Response to a Growing Trend of Workers Eating at Their