Mega Skateboard Supplier had net sales of $2.8 million,its cost of goods sold was $1.6 million,and its net income was $0.9 million.Its gross margin ratio equals:
A)32%.
B)175%.
C)43%.
D)57%.
E)56%.

Question

Quizplus · Accepted Answer

The gross margin ratio is calculated as (Net Sales - Cost of Goods Sold) / Net Sales. Plugging in the given values, we get ($2.8M - $1.6M) / $2.8M = 0.43 or 43%. Therefore, the correct choice is C.

Mega Skateboard Supplier Had Net Sales of $2