Given the information below,determine this organization's gross profit margin: Net Sales Revenue $300,000
Cost of Goods Sold $150,000
Net Profit $20,000
Total Assets $250,00
A)15%
B)20%
C)50%
D)30%
E)40%

Question

Quizplus · Accepted Answer

Gross profit margin is calculated as (Net Sales Revenue - Cost of Goods Sold) / Net Sales Revenue. Here, it is ($300,000 - $150,000) / $300,000 = $150,000 / $300,000 = 0.50 or 50%.

Given the Information Below,determine This Organization's Gross Profit Margin: Net