A company's net sales are $775,420, its costs of goods sold are $413,890, and its net income is $117,220. Its gross margin ratio equals:
A) 46.6%.
B) 53.4%.
C) 28.3%.
D) 31.5%.
E) 40.5%.

Name: A company's net sales are $775,420, its costs of goods sold are $413,890, and its net income is $117,220. Its gross margin ratio equals: A) 46.6%. B) 53.4%. C) 28.3%. D) 31.5%. E) 40.5%.
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Question

Quizplus · Accepted Answer

Gross margin ratio = (Net sales - Cost of goods sold) / Net sales= (775,420 - 413,890) / 775,420= 0.466 or 46.6%

A Company's Net Sales Are $775,420, Its Costs of Goods