Mega skateboard supplier had net sales of $2.8 million, its cost of goods sold was $1.6 million, and its net income was $0.9 million. its gross margin ratio equals:

Question

Jaylyn Atkinson

Business

13 May, 19:08

Mega skateboard supplier had net sales of $2.8 million, its cost of goods sold was $1.6 million, and its net income was $0.9 million. its gross margin ratio equals:

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Moses Sellers · Answer 1

The gross margin ratio is also sometimes referred to as the gross profit percentage or the gross profit margin. To solve for its value, we divide the net profit of a certain company or group by its net sales. From the given above,

gross profit margin = $0.9 million / $2.8 million = 0.32