Country Homes LLC Is a Store for People Who Collect

Country Homes LLC is a store for people who collect country arts and crafts and use them to decorate their homes.Last year,its net sales totaled $120,500.The cost value of the items it sold was $72,300.Taxes for the year were $7,680.The only expenses that the operation had were (1) rent for $3000, (2) salaries to the owner and one part-time assistant for $27,000, (3) utilities at $1,200,and (4) advertising of $500.Calculate the gross margin percentage for Country Homes.

A) 40 percent
B) 26.3 percent
C) 9.6 percent
D) 60.2 percent
E) 7.3 percent