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Your firm has the following income statement items: Sales $52,000,000 Income tax $1,880,000 Operating expenses $9,000,000 Cost of goods sold $36,000,000 Interest expense $800,000 Required: Compute the firm's gross profit margin. a. 30.8% b. 8.3% c. 69.2% d. 13.5%

Your firm has the following income statement items: Sales $52,000,000 Income tax $1,880,000 Operating expenses $9,000,000 Cost of goods sold $36,000,000 Interest expense $800,000 Required: Compute the firm's gross profit margin. a. 30.8% b. 8.3% c. 69.2% d. 13.5%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Your firm has the following income statement items: Sales $52,000,000 Income tax $1,880,000 Operating expenses $9,000,000 Cost of goods sold $36,000,000 Interest expense $800,000 Required: Compute the firm's gross profit margin. a. 30.8% b. 8.3% c. 69.2% d. 13.5%
Transcribed Image Text:Your firm has the following income statement items: Sales $52,000,000 Income tax $1,880,000 Operating expenses $9,000,000 Cost of goods sold $36,000,000 Interest expense $800,000 Required: Compute the firm's gross profit margin. a. 30.8% b. 8.3% c. 69.2% d. 13.5%
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