Selected financial data (in thousands of dollars) for Barnstable Company appear below:
-For Year 2, the gross margin as a percentage of sales was:
A) 5%
B) 60%
C) 10%
D) 40%

Question

Selected financial data (in thousands of dollars) for Barnstable Company appear below: 
-For Year 2, the gross margin as a percentage of sales was:
A) 5% 
B) 60% 
C) 10% 
D) 40%

Quizplus · Accepted Answer

The gross margin percentage is calculated by subtracting the cost of goods sold from sales and then dividing by sales. Without specific numbers, the correct choice is based on typical gross margin percentages, and 40% is a common gross margin for many industries.

Selected Financial Data (In Thousands of Dollars) for Barnstable Company