Ask Question
27 August, 08:51

A company had net sales of $752,000 and cost of goods sold of $543,000. Its net income was $17,530. The company's gross margin ratio equals:

+2
Answers (1)
  1. 27 August, 12:50
    0
    The gross margin ratio is 27.8%

    Explanation:

    Gross Margin is an indicator of whether a company is running an efficient operation and if its sales are good enough

    The formula for calculating gross margin ratio is

    Total revenue - cost of goods sold : total revenue x 100

    Total revenue = $752,000,

    Cost of goods sold = $543,000

    therefore gross margin ratio

    $752,000 - $543,000 = $209,000

    $209,000 : $752,000 = 0.2779

    0.2779 * 100 = 27.79 ≅ 27.8%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A company had net sales of $752,000 and cost of goods sold of $543,000. Its net income was $17,530. The company's gross margin ratio equals: ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers