Question

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:

Answer 1

43%

Step-by-step explanation:

($2.8-$1.6)/$2.8 X 100 = .43

Answer 2

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