The following data relate to Company B. Other operating expenses 100 Cost of goo
ID: 2498678 • Letter: T
Question
The following data relate to Company B.
Other operating expenses 100
Cost of goods sold 650
Interest expense 50
Sales 1,000
Income tax expense 150
Given these data, compute Company B’s GROSS PROFIT PERCENTAGE (gross profit divided by sales).
65%
35%
75%
25%
5%
95%
65%
35%
75%
25%
5%
95%
Explanation / Answer
GROSS PROFIT PERCENTAGE = gross profit / sales * 100
= (1000- 650 -100) / 1000 * 100
= 25 %