The gross margin percentage is calculated as
A)Gross margin divided by cost of goods sold.
B)Gross margin divided by net sales revenue.
C)Gross margin divided by net income.
D)Net income divided by gross margin.

Question

Quizplus · Accepted Answer

The gross margin percentage is calculated by dividing the gross margin by the net sales revenue. This gives a percentage that represents the amount of money a company makes in profit for every dollar of sales revenue generated. Therefore, option B is the correct choice.

The Gross Margin Percentage Is Calculated as