If gross profit is $540,000, interest expense is $200,000, sales is $1,800,000 and total assets are $5,400,000, calculate the gross profit margin.
A) 18.9%
B) 30%
C) 10%
D) 6.3%

Name: If gross profit is $540,000, interest expense is $200,000, sales is $1,800,000 and total assets are $5,400,000, calculate the gross profit margin. A) 18.9% B) 30% C) 10% D) 6.3%
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Question

Quizplus · Accepted Answer

Gross Profit Margin = (Gross Profit / Sales) x 100%
 
Gross Profit Margin = ($540,000 / $1,800,000) x 100%
 
Gross Profit Margin = 30%

If Gross Profit Is $540,000, Interest Expense Is $200,000, Sales