Salty's Surfshop Reported Net Sales of $258,000,Cost of Goods Sold

question 146

Multiple Choice

Salty's Surfshop reported Net Sales of $258,000,Cost of Goods Sold of $110,500,Operating Expenses of $62,400,and Income Tax Expense of 21,600.Salty's gross profit margin percentage was:

• A)32.98.
• B)42.83.
• C)57.17.
• D)24.61.

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Definitions:

Average Rate of Return

A financial metric that assesses an investment's profitability by dividing the annual average profit by the initial cost of investment.

Capital Investment Proposals

Proposals for projects or investments that require significant amounts of capital, analyzed for potential return and risk.

Cash Payback Methods

A capital budgeting technique that estimates the time needed for an investment to generate cash flows to recover its initial cost.

Average Rate of Return

A financial ratio used to estimate the profitability of investments by dividing the average annual profit by the initial investment cost.