Needle Co.had net sales of $28 million,cost of goods sold of $16 million,and net income of $8 million.Its gross margin ratio was 3.4%.

Question

Quizplus · Accepted Answer

The gross margin percentage can be calculated as (Net Sales - Cost of Goods Sold) / Net Sales x 100%. Using the given values, we get (28 million - 16 million) / 28 million x 100% = 42.86%. Therefore, the given gross margin ratio of 3.4% is false.

Needle Cohad Net Sales of $28 Million,cost of Goods Sold of of $16