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:

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Business

Marco Beasley

27 March, 03:16

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:

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Elf · Answer 1

To find gross margin ratio, you divide gross profits by net sales. First, to find gross profit, you subtract cost of goods from net sales ($775,420-$413,890). You then divide the result ($361,530) by $775,420. The result is 0.466, or a gross margin ratio of 46.6%.