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A companies gross profit or gross margin was $83,750 and its net sales were $347,800 it’s gross margin ratio is

Sagot :

Shahzaibfarazidn

Answer:

Gross Margin Ratio = 0.240799 or 24.0799%

Explanation:

Gross profit margin ratio or gross margin ratio is a financial ratio that expresses the gross profit of a company as a percentage of its total revenue. The gross profit is the difference between the total revenue and the cost of goods sold. The gross margin ratio can be calculated as follows,

Gross Margin Ratio = Gross Profit / Total Revenue

Gross Margin Ratio = 83750 / 347800

Gross Margin Ratio = 0.240799 or 24.0799%

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