Question

Sapien Corporation has provided the following data for the most recent year: Sales $1,340,000 Gross margin $460,000 Net operating income $ 54,846 Net income before taxes $ 41,846 Net income $27,200 The company’s gross margin percentage is closest to:a.1691.2% b. 52.3% c. 5.9% d. 34.3%

Answer 1

Answer:

Option (d) is correct.

Explanation:

Given that,

Sales = $1,340,000

Gross margin = $460,000

Net operating income = $54,846

Net income before taxes = $41,846

Net income = $27,200

Gross margin percentage is calculated by dividing the gross margin with sales.

Gross margin percentage:

= (Gross margin ÷ Sales ) × 100

= (460,000 ÷ 13,40,000)  × 100

= 34.3 % (Approx)