A company reports net sales of $750,000, cost of goods sold of $280,000, and net income of $40,000. What is its gross margin ratio?

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 2MC: The following information is available for Cooke Company for the current year: The gross margin is...
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A company reports net sales of $750,000, cost of
goods sold of $280,000, and net income of $40,000.
What is its gross margin ratio?
Transcribed Image Text:A company reports net sales of $750,000, cost of goods sold of $280,000, and net income of $40,000. What is its gross margin ratio?
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