Mormino Corporation's income statement appears below: The company's gross margin percentage is closest to:
A)1888.9%
B)5.3%
C)41.1%
D)69.9%

Question

Mormino Corporation's income statement appears below:  The company's gross margin percentage is closest to:
A)1888.9% 
B)5.3% 
C)41.1% 
D)69.9%

Quizplus · Accepted Answer

Gross margin percentage is calculated by dividing gross profit by total revenue and multiplying by 100. In this case, gross profit = $20,000 and total revenue = $48,700, so the gross margin percentage is (20,000 / 48,700) x 100 = 41.1%.

Mormino Corporation's Income Statement Appears Below: the Company's Gross