Tigger Corp. has reported the financial results for the year-ended 2006. Based on the information given, calculate the firm's gross profit margin and operating profit margin. Round your final answers to one decimal place. Net sales = $4,156,700
Net income = $778,321
Cost of goods sold = $2,715,334
EBIT = $1,356,098
A) 34.7%; 32.6%
B) 32.6%; 18.7%
C) 34.7%; 18.7%
D) None of the above.

Question

Quizplus · Accepted Answer

Gross profit margin = (Net sales - Cost of goods sold) / Net sales= ($4,156,700 - $2,715,334) / $4,156,700= 34.7%Operating profit margin = EBIT / Net sales= $1,356,098 / $4,156,700= 32.6%