A company's net sales are $775,420, its costs of goods sold are $413,890, and its net income is $117,220. Its gross margin ratio equals:
A) 46.6%.
B) 53.4%.
C) 28.3%.
D) 31.5%.
E) 40.5%.
A) 46.6%.
Explanation: Gross Margin Ratio = (Net Sales - Cost of Goods Sold)/Net Sales
Gross Margin Ratio = ($775,420 - $413,890)/$775,420 = 46.6%
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