Question

A company's gross profit (or gross margin) was $129,650 and its net sales were $502,900. Its gross margin ratio is

Answer 1

25.8%

Step-by-step explanation:

A company gross profit is $129,650

The net sales is $502,900

Therefore, the gross margin ratio can be calculated as follows

Gross margin ratio= gross margin /net sales

= $129,650/$502,900

= 0.258×100

= 25.8%

Hence the gross margin ratio is 25.8%