Sapien Corporation has provided the following data for the most recent year: 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:  The company's gross margin percentage is closest to:
A)52.3% 
B)1691.2% 
C)5.9% 
D)34.3%

Quizplus · Accepted Answer

To calculate the gross margin percentage, we need to use the formula:

Gross Margin Percentage = (Gross Profit / Revenue) x 100

From the provided data, we can see that the Gross Profit is $58,068,000 and the Revenue is $169,169,000. Plugging these values into the formula, we get:

Gross Margin Percentage = (58,068,000 / 169,169,000) x 100
Gross Margin Percentage = 34.3%

Therefore, the closest answer choice is D) 34.3%. Gross margin percentage = Gross margin ÷ Sales
= $460,000 ÷ $1,340,000 = 34.3% (rounded)

Sapien Corporation Has Provided the Following Data for the Most