The following information is from Megabux, Inc.'s annual report for the years ended December 31:

-Refer to the Megabux annual report above.Calculate the gross profit ratio for 2012.
A)1)7%
B)48.3%
C)62.0%
D)51.7%

Question

The following information is from Megabux, Inc.'s annual report for the years ended December 31:

-Refer to the Megabux annual report above.Calculate the gross profit ratio for 2012.
A)1)7% 
B)48.3% 
C)62.0% 
D)51.7%

Quizplus · Accepted Answer

Gross profit ratio is calculated by dividing gross profit by net sales and multiplying by 100. Therefore, Gross Profit Ratio = Gross Profit/Net Sales *100. From the given data, Gross Profit for 2012 is $40,000 and Net Sales for 2012 is $77,400. Therefore, Gross Profit Ratio for 2012 = ($40,000/$77,400)*100 = 51.7%. Hence, the correct choice is D.

The Following Information Is from Megabux, Inc