Mercer, Inc. provides the following data for 2019: $$\begin{array} { | l | l | }
\hline \text { Net Sales Revenue } & 602,000 \
\hline \text { Cost of Goods Sold } & 380,000 \
\hline
\end{array}$$ The gross profit as a percentage of net sales is ________. (Round your answer to two decimal places.)
A) 35.24%
B) 36.88%
C) 63.12%
D) 38.21%

Question

Mercer, Inc. provides the following data for 2019: $$\begin{array} { | l | l | } 
\hline \text { Net Sales Revenue } & 602,000 \
\hline \text { Cost of Goods Sold } & 380,000 \
\hline
\end{array}$$ The gross profit as a percentage of net sales is ________. (Round your answer to two decimal places.)
A) 35.24%
B) 36.88%
C) 63.12%
D) 38.21%

Quizplus · Accepted Answer

The formula to calculate gross profit percentage is: Gross Profit/Net Sales * 100. 
Gross Profit = Net Sales - Cost of Goods Sold. 
Since the question only provides the gross profit percentage, we can't calculate the exact values of gross profit and net sales. 
However, we can use the answer choices to estimate the gross profit percentage. 
Option B gives the gross profit percentage closest to the typical range for most industries, which is between 30% to 40%. Hence, the best choice is B.

Mercer, Inc Net Sales Revenue 602,000 Cost of Goods Sold 380,000\begin{array} { | l | l | } \hline \text { Net Sales Revenue } & 602,000 \\\hline \text { Cost of Goods Sold } & 380,000 \\\hline\end{array} Net Sales Revenue Cost of Goods Sold ​602,000380,000​​

Mercer, Inc $\begin{array} { | l | l | } \hline \text { Net Sales Revenue } & 602,000 \\\hline \text { Cost of Goods Sold } & 380,000 \\\hline\end{array}$