Kearin Corporation has provided the following financial data:
Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share.
-The company's gross margin percentage for Year 2 is closest to:
A) 62.5%
B) 4.2%
C) 38.5%
D) 2381.0%

Question

Kearin Corporation has provided the following financial data:
   Dividends on common stock during Year 2 totaled $8,000. The market price of common stock at the end of Year 2 was $2.02 per share.
-The company's gross margin percentage for Year 2 is closest to:
A) 62.5% 
B) 4.2% 
C) 38.5% 
D) 2381.0%

Quizplus · Accepted Answer

Gross margin percentage = Gross margin ÷ Sales
= $500,000 ÷ $1,300,000 = 38.5% (rounded)

Kearin Corporation Has Provided the Following Financial Data