XYZ Company shows the following balances: Sales = $800,000 Sales discounts = $15,000 Sales returns and allowances = $25,000 ⚫ Cost of goods sold = $340,000 Operating expenses = $220,000 . Income tax expense = $45,000 What is the gross profit margin? A. 55.3% B. 57.5% C. 45.8% D. 49.2%

XYZ Company shows the following balances: Sales = $800,000 Sales discounts = $15,000 Sales returns and allowances = $25,000 ⚫ Cost of goods sold = $340,000 Operating expenses = $220,000 . Income tax expense = $45,000 What is the gross profit margin? A. 55.3% B. 57.5% C. 45.8% D. 49.2%

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

XYZ Company shows the following balances:
Sales = $800,000
Sales discounts = $15,000
Sales returns and allowances = $25,000
⚫ Cost of goods sold = $340,000
Operating expenses = $220,000
. Income tax expense = $45,000
What is the gross profit margin?
A. 55.3%
B. 57.5%
C. 45.8%
D. 49.2%

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