The following information was drawn from the annual reports of two companies.
Company A Company B
Sales revenue $ 1,000 $ 2,000
Cost of goods sold (600) (1,100)
Gross margin 400 900
Operating expenses (220) (700)
Operating income 180 200
Gain on sale of equipment 150 0
Net income $ 330 $ 200
Based on this information, Company A's gross margin percentage is
a. 60%.
b. 55%.
c. 45%.
d. 40%.
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