A company shows the following balances: Item Amount Cost of goods sold $217,000 Income tax expense $33,600 Operating expenses $172,000 Sales $550,000 Sales discounts $12,000 Sales returns and allowances $37,000 What is the gross profit margin? A) 56.7% B) 34.3% C) 43.3% D) 39.5%

A company shows the following balances: Item Amount Cost of goods sold $217,000 Income tax expense $33,600 Operating expenses $172,000 Sales $550,000 Sales discounts $12,000 Sales returns and allowances $37,000 What is the gross profit margin? A) 56.7% B) 34.3% C) 43.3% D) 39.5%

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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Question

What is the gross profit margin? General Accounting question

A company shows the following balances:
Item
Amount
Cost of goods sold
$217,000
Income tax expense
$33,600
Operating expenses
$172,000
Sales
$550,000
Sales discounts
$12,000
Sales returns and allowances $37,000
What is the gross profit margin?
A) 56.7%
B) 34.3%
C) 43.3%
D) 39.5%

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