Your firm has the following income statement items: sales of $52 000 000; income tax of $1 880 000; operating expenses of $9 000 000; cost of goods sold of $36 000 000; and interest expense of $800 000.Calculate the firm's gross profit margin.

Question

Quizplus · Accepted Answer

Gross profit margin = (Sales - Cost of goods sold)/ Sales x 100%
Gross profit margin = (52,000,000 - 36,000,000)/ 52,000,000 x 100% = 30.8%

Your Firm Has the Following Income Statement Items: Sales of $52