Wal-MartWal-Mart, the world's largest retailer by revenue, announced that it will get back to its founder's roots by initiating more price cuts. Critics claimed that the giant was getting away from its original focus because it posted relatively high gross profit margins. CEO Mike Duke assuaged critics by saying Wal-Mart's $400 billion in sales will become even larger because the price cuts will attract more customers and it will lower its costs of goods sold.Refer to Wal-Mart. Wal-Mart's gross margin is the:
A. total sales from all of its stores worldwide
B. amount of money it makes as a percentage of sales after the cost of goods sold is subtracted
C. amount of money it makes as a percentage of sales before taxes
D. amount of money it makes as a percentage of sales after all costs are subtracted
E. net profit it earns after all expenses and taxes are subtracted
Answer: B
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