Brimmel Corp.has provided the following information: Sales were $780,000;
Cost of goods sold was $429,000;
Net income was $195,000.
What was Brimmel's gross profit percentage?
A)55%
B)45%
C)62%
D)222%

Question

Quizplus · Accepted Answer

Gross profit percentage is calculated as (Gross Profit/Sales) x 100%.

Using the information provided: 
Gross Profit = Sales - Cost of Goods Sold 
Gross Profit = $780,000 - $429,000 
Gross Profit = $351,000

Gross Profit Percentage = (Gross Profit/Sales) x 100% 
Gross Profit Percentage = ($351,000/$780,000) x 100% 
Gross Profit Percentage = 0.45 x 100% 
Gross Profit Percentage = 45%

Therefore, the correct answer is B) 45%.