Answer:
The gross margin ratio is 27.8%
Explanation:
Gross Margin is an indicator of whether a company is running an efficient operation and if its sales are good enough
The formula for calculating gross margin ratio is
Total revenue - cost of goods sold ÷ total revenue x 100
Total revenue = $752,000,
Cost of goods sold = $543,000
therefore gross margin ratio
$752,000 - $543,000 = $209,000
$209,000 ÷ $752,000 = 0.2779
0.2779 × 100 = 27.79 ≅ 27.8%
