Mega Skateboard Supplier had net sales of $2.4 million, its cost of goods sold was $1.3 million, and its net income was $.8 million. Its gross margin ratio equals:

Question

Henry Barr

Business

3 March, 16:15

Mega Skateboard Supplier had net sales of $2.4 million, its cost of goods sold was $1.3 million, and its net income was $.8 million. Its gross margin ratio equals:

+4

Answers (1)

Know the Answer?

Kenley Barajas · Answer 1

45.83%

Explanation:

The Gross Margin Ratio is a profitability ratio. It compares the gross margin of a business to its net revenue.

The formula for calculating gross profit ratio is

Gross Profit Margin ration = Net Sales - COGS

Net Sales

COGS is the cost of goods sold.

For Megascape board

Net sales = $2.4 million,

COGS = $1.3 million,

gross profit margin ratio = $2.4 - $1.3

$2.4

=$1.1/$2.4 x 100

=45.83%