last month, koreys comics had $4,350 in net sales with a gross profit of $3,320 and a net income of $1,850…

last month, koreys comics had $4,350 in net sales with a gross profit of $3,320 and a net income of $1,850. calculate koreys gross profit margin.\na. 42.5%\nb. 55.7%\nc. 76.3%\nd. 179.5%\nplease select the best answer from the choices provided

last month, koreys comics had $4,350 in net sales with a gross profit of $3,320 and a net income of $1,850. calculate koreys gross profit margin.\na. 42.5%\nb. 55.7%\nc. 76.3%\nd. 179.5%\nplease select the best answer from the choices provided

Answer

Explanation:

Step1: Recall gross - profit - margin formula

Gross profit margin = $\frac{\text{Gross Profit}}{\text{Net Sales}}\times100%$

Step2: Substitute given values

Given net sales = $4350$ and gross profit = $3320$. So, gross profit margin = $\frac{3320}{4350}\times100%$

Step3: Calculate the result

$\frac{3320}{4350}\times100%\approx0.763\times100% = 76.3%$

Answer:

C. 76.3%