Sapien Corporation has provided the following data for the most recent year:
$\begin{array}{lr}
\text {Sales }&\$1,340,000\
\text {Gross margin. }&\$460,000\
\text {Net operating income. }&\$54,846\
\text {Net income before taxes }&\$41,846\
\text {Net income. }&\$27,200\
\end{array}$
The company's gross margin percentage is closest to:
A) 52.3%
B) 1691.2%
C) 5.9%
D) 34.3%

Question

Sapien Corporation has provided the following data for the most recent year:
$\begin{array}{lr}
\text {Sales }&\$1,340,000\
\text {Gross margin. }&\$460,000\
\text {Net operating income. }&\$54,846\
\text {Net income before taxes }&\$41,846\
\text {Net income. }&\$27,200\
\end{array}$
 The company's gross margin percentage is closest to:
A) 52.3%
B) 1691.2%
C) 5.9%
D) 34.3%

Quizplus · Accepted Answer

The gross margin percentage is calculated as (Gross Margin / Sales) * 100. Using the provided data, (460,000 / 1,340,000) * 100 = 34.3%.

Sapien Corporation Has Provided the Following Data for the Most