Ask Question
25 May, 09:57

Network Systems, Inc., had net sales of $750,000, cost of goods sold of $562,500, and net income of $100,000. Its gross margin ratio is closest to: 4.00. 1.88. 0.25. 0.12.

+5
Answers (1)
  1. 25 May, 10:52
    0
    0.25

    Explanation:

    Dividing a company's gross profit by its net sales and expressing it as a percentage gives the gross margin ratio.

    Mathematically:

    Gross margin ratio = [ (Total revenue - cost of goods sold) / Total revenue] * 100%

    = (750,000 - 562,500) / 750,000 * 100%

    187500/750000 * 100% = 25% or 0.25
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Network Systems, Inc., had net sales of $750,000, cost of goods sold of $562,500, and net income of $100,000. Its gross margin ratio is ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers