Raven Industries reported Net Sales of $296,000, Cost of Goods Sold of $196,600, Operating Expenses of $57,900, and Income Tax Expense of 15,300. Raven Industries' gross profit margin percentage was: (Round your final answer to two decimal places, X.XX%.)
A)33.58%.
B)8.85%.
C)66.42%.
D)14.02%.

Question

Quizplus · Accepted Answer

To calculate the gross profit margin percentage, we subtract the cost of goods sold from the net sales to get the gross profit which is $296,000 - $196,600 = $99,400.
Then, we divide the gross profit by the net sales and multiply by 100 to get the percentage: ($99,400 / $296,000) * 100 = 33.58%. Therefore, the answer is choice A, with a gross profit margin percentage of 33.58%.

Raven Industries Reported Net Sales of $296,000, Cost of Goods