Use the Following Information for Questions

Multiple Choice

Use the following information for questions:
Review of the financial statements revealed the following for Sonoma Inc.: Sales $1,250,000, Net income $37,500, Total assets $650,000, Long-term debt $750,000, Interest expense $65,000 and Cost of goods sold $775,000.
-What is the Sonoma's gross profit margin closest to:

A) 3%
B) 38%
C) 52%
D) 62%