Compute Profit Margin Ratio Given the Following Information

question 90

Multiple Choice

Compute profit margin ratio given the following information.
Cost of goods sold: $28,000
Net income: $21,400
Gross profit: $400,000

• A)5%
• B)7%
• C)1.65%
• D)6.64%
• E)76.42%

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Definitions:

Semipermeable Membrane

A type of barrier that allows certain molecules or ions to pass through it by diffusion and occasionally specialized "facilitated diffusion."

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of all known living organisms.

Millions

A numerical unit representing one thousand thousands, or 1,000,000.

Cytoplasm

The jelly-like substance inside cells that contains organelles and is enclosed by the cell membrane.