jim had a very good quarter at his car lot with net sales reaching just over $456,000. this created a net…

jim had a very good quarter at his car lot with net sales reaching just over $456,000. this created a net income of $195,000. if jims operating expenses last quarter were $23,000, what was his gross profit margin?\na. 5.0%\nb. 37.7%\nc. 42.8%\nd. 47.8%

jim had a very good quarter at his car lot with net sales reaching just over $456,000. this created a net income of $195,000. if jims operating expenses last quarter were $23,000, what was his gross profit margin?\na. 5.0%\nb. 37.7%\nc. 42.8%\nd. 47.8%

Answer

Explanation:

Step1: Calculate gross profit

Gross profit = Net income + Operating expenses. So, gross profit = $195000 + 23000=$218000$.

Step2: Calculate gross profit margin

Gross profit margin = $\frac{\text{Gross profit}}{\text{Net sales}}\times100%$. Substitute the values: $\frac{218000}{456000}\times 100%\approx 47.8%$.

Answer:

d. 47.8%