Tulsa Company has the following data available: $\begin{array}{llll}
&2X13&2X12&2X11\
\text { Sales (all credit sales) } & \$ 800 & \$ 740 & \$ 675 \
\text { Less Cost of Goods Sold } & \underline{525} & \underline{490} &450\
\text { Gross Profit }& \$ 275 &\$ 250 &\$ 225\
\end{array}$
What is the gross profit rate for Tulsa Company in 2X13? Has the gross profit rate improved or not improved since 2X12?
A)23.3%,improved
B)34.4%,improved
C)34.4%,not improved
D)52.4%,improved
E)52.4%,not improved

Question

Tulsa Company has the following data available: $\begin{array}{llll}
&2X13&2X12&2X11\
\text { Sales (all credit sales) } & \$ 800 & \$ 740 & \$ 675 \
\text { Less Cost of Goods Sold } & \underline{525} & \underline{490} &450\
\text { Gross Profit }& \$ 275 &\$ 250 &\$ 225\
\end{array}$ 
What is the gross profit rate for Tulsa Company in 2X13? Has the gross profit rate improved or not improved since 2X12?
A)23.3%,improved
B)34.4%,improved
C)34.4%,not improved
D)52.4%,improved
E)52.4%,not improved

Quizplus · Accepted Answer

Gross profit rate is calculated by dividing gross profit by sales and multiplying by 100.

For 2X13: Gross profit rate = (275/800) x 100 ≈ 34.4%
For 2X12: Gross profit rate = (250/740) x 100 ≈ 33.8%

Therefore, the gross profit rate has improved from 33.8% in 2X12 to 34.4% in 2X13, making option B the correct answer.

Tulsa Company Has the Following Data Available What Is the Gross Profit Rate for Tulsa Company in (all