Use the following data for this question. Operating Expenses $35,000 Sales Returns and Allowances $12,000 Sales Discounts $3,000 Sales $140,000 Cost of Goods Sold $67,000 The profit margin ratio would be: a. 0.520. b. 0.203. c. 0.255. d. 0.184.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 19Q: The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and...
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Use the following data for this question.
Operating Expenses
$35,000
Sales Returns and Allowances $12,000
Sales Discounts
$3,000
Sales
$140,000
Cost of Goods Sold
$67,000
The profit margin ratio would be:
a. 0.520.
b. 0.203.
c. 0.255.
d. 0.184.
Transcribed Image Text:Use the following data for this question. Operating Expenses $35,000 Sales Returns and Allowances $12,000 Sales Discounts $3,000 Sales $140,000 Cost of Goods Sold $67,000 The profit margin ratio would be: a. 0.520. b. 0.203. c. 0.255. d. 0.184.
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