A company had net sales of $82,000,cost of goods sold of $70,000,and other expenses of $2,000.Its gross margin ratio equals:
A)85.37%.
B)2.44%.
C)14.63%.
D)16.67%.
E)683.33%.

Question

Quizplus · Accepted Answer

Gross Margin Ratio = (Net Sales - Cost of Goods Sold) / Net Sales

Gross Margin Ratio = (82,000 - 70,000) / 82,000

Gross Margin Ratio = 12,000 / 82,000

Gross Margin Ratio = 0.1463 or 14.63%

Therefore, the correct choice is C.

A Company Had Net Sales of $82,000,cost of Goods Sold