Answer:
gross profit rate = 40%
for every dolalr of sales after paying the goods there is left 40 cents
profit margin: 12%
for every dollar of sales 12 cents are left as profit
Step-by-step explanation:
Swifty Corporation reported:
net sales 260,000
cost of goods sold 156,000
operating expenses (63,000)
net income 31,200
gross profit rate:

gross profit: 260,000 - 156,000 = 104,000
104,000 / 260,000 = 40%
profit margin:

31,200/260,000 = 0.12 = 12%