Danby,Inc.provides the following data from its income statement for 2018: $$\begin{array} { | l | r | }
\hline \text { Net Sales } & \$ 540,000 \
\hline \text { Cost of Goods Sold } & \$ 190,000 \
\hline \text { Gross Profit } & \$ 350,000 \
\hline
\end{array}$$ Calculate the gross profit percentage.(Round your answer to two decimal places.)
A) 18.42%
B) 64.81%
C) 100.00%
D) 35.19%

Question

Danby,Inc.provides the following data from its income statement for 2018: $$\begin{array} { | l | r | } 
\hline \text { Net Sales } & \$ 540,000 \
\hline \text { Cost of Goods Sold } & \$ 190,000 \
\hline \text { Gross Profit } & \$ 350,000 \
\hline
\end{array}$$ Calculate the gross profit percentage.(Round your answer to two decimal places.)
A) 18.42%
B) 64.81%
C) 100.00%
D) 35.19%

Quizplus · Accepted Answer

Gross profit percentage is calculated as (Gross Profit / Net Sales) * 100. Here, it is (\$350,000 / \$540,000) * 100 = 64.81%.

Danby,IncProvides the Following Data from Its Income Statement for 2018