Neef Corporation has provided the following financial data from its balance sheet and income statement: The company's gross margin percentage for Year 2 is closest to:
A)59.6%
B)2.5%
C)37.3%
D)4076.9%

Question

Neef Corporation has provided the following financial data from its balance sheet and income statement:   The company's gross margin percentage for Year 2 is closest to:
A)59.6% 
B)2.5% 
C)37.3% 
D)4076.9%

Quizplus · Accepted Answer

Gross Margin = Revenue - Cost of Goods Sold
In Year 2, Gross Margin = $1,500,000 - $943,500 = $556,500
So, Gross Margin Percentage = (Gross Margin / Revenue) * 100
= ($556,500 / $1,488,000) * 100
= 37.3% 
Therefore, the answer is C) 37.3%.

Neef Corporation Has Provided the Following Financial Data from Its