Island Industries Reported Net Sales of $306,000,Cost of Goods Sold

question 128

Multiple Choice

Island Industries reported Net Sales of $306,000,Cost of Goods Sold of $192,600,Operating Expenses of $58,900,and Income Tax Expense of 12,300.Island Industries' gross profit margin percentage was:

• A)37.06.
• B)13.79.
• C)62.94.
• D)17.81.

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Definitions:

Short Run

A period in which at least one factor of production is considered fixed, typically affecting decisions in economics and business.

Internal Growth Rate

The maximum rate at which a company can expand using only internal financing sources, without external financing.

Dividend Payout Ratio

The fraction of net earnings a firm pays to its shareholders as dividends, expressed as a percentage of the company's total earnings.

Retention Ratio

The proportion of net income that is retained by a company rather than distributed to its shareholders as dividends, indicating how much profit is reinvested.