If a company has sales revenue of $630,000, net sales of $600,000, and cost of goods sold of $390,000, the gross profit rate is
A) 35%.
B) 38%
C) 62%.
D) 65%.

Name: If a company has sales revenue of $630,000, net sales of $600,000, and cost of goods sold of $390,000, the gross profit rate is A) 35%. B) 38% C) 62%. D) 65%.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

Gross profit is calculated as net sales minus cost of goods sold. The gross profit is $600,000 - $390,000 = $210,000. The gross profit rate is then ($210,000 / $600,000) * 100 = 35%.

If a Company Has Sales Revenue of $630,000, Net Sales