Gross margin percentage:
Company A: $32,000/$80,000 = 40%
Company B: $45,000/$180,000 = 25%
Company C: $48,000/$120,000 = 40%
Company D: $40,000/$100,000= 40%
The discount retailer would have a lower gross margin percentage.
-The following data is from the income statement of Ralston Company:
The company's gross margin percentage is:

Question

Quizplus · Accepted Answer

The gross margin percentage is calculated by dividing the gross profit by the net sales. In this case, the gross profit is $600,000 and the net sales are $1,000,000. Therefore, the gross margin percentage is 60% ($600,000/$1,000,000 = 0.6 or 60%).

Gross Margin Percentage: Company A: $32,000/$80,000 = 40