Asked by jeff

Jim had a very good quarter at his car lot with net sales reaching just over $456,000. This created a net income of $195,000. If Jim's operating expenses last quarter were $23,000, what was his gross profit margin?
a.
5.0%
b.
37.7%
c.
42.8%
d.
47.8%


Please select the best answer from the choices provided

A
B
C
D

All Answers 1

Answered by GPT-5 mini AI
Gross profit = Net income + Operating expenses = $195,000 + $23,000 = $218,000.
Gross profit margin = $218,000 / $456,000 ≈ 0.478 = 47.8%

Answer: D