Homework Help is Here – Start Your Trial Now!
Business
Accounting
A company had $5 million in sales, $3 million in cost of goods sold, and $1 million in selling and administrative expenses during the last fiscal year. If the company's income tax rate was 25%, what was the company's gross profit margin percentage? a. 20% b. 50% c. 30% d. 40%

A company had $5 million in sales, $3 million in cost of goods sold, and $1 million in selling and administrative expenses during the last fiscal year. If the company's income tax rate was 25%, what was the company's gross profit margin percentage? a. 20% b. 50% c. 30% d. 40%

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...
See similar textbooks
icon
Related questions
Question

What was the company's gross profit margin percentage?

A company had $5 million in sales, $3 million in cost of goods sold, and $1 million in selling and administrative expenses during the last fiscal year. If the company's income tax rate was 25%, what was the company's gross profit margin percentage? a. 20% b. 50% c. 30% d. 40%
Transcribed Image Text:A company had $5 million in sales, $3 million in cost of goods sold, and $1 million in selling and administrative expenses during the last fiscal year. If the company's income tax rate was 25%, what was the company's gross profit margin percentage? a. 20% b. 50% c. 30% d. 40%
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
EBK CFIN
EBK CFIN
Finance
ISBN:
9781337671743
Author:
BESLEY
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SEE MORE TEXTBOOKS