Financial information is presented below: $$\begin{array} { l r }
\text { Operating expenses } & \$ 36,000 \
\text { Sales revenue } & 150,000 \
\text { Cost of goods sold } & 105,000
\end{array}$$ The gross profit rate would be
A) .70.
B) .24
C) .06.
D) .30.

Question

Financial information is presented below: $$\begin{array} { l r } 
\text { Operating expenses } & \$ 36,000 \
\text { Sales revenue } & 150,000 \
\text { Cost of goods sold } & 105,000
\end{array}$$ The gross profit rate would be
A) .70.
B) .24
C) .06.
D) .30.

Quizplus · Accepted Answer

Gross profit is calculated as Sales Revenue minus Cost of Goods Sold. Gross profit rate is then calculated as Gross Profit divided by Sales Revenue. Here, Gross Profit = $150,000 - $105,000 = $45,000. Gross Profit Rate = $45,000 / $150,000 = 0.30.

Financial Information Is Presented Below The Gross Profit Rate Would Be A)

Financial Information Is Presented Below The Gross Profit Rate Would Be
A)