A Company's Net Sales Are $775,420, Its Costs of Goods

Multiple Choice

A company's net sales are $775,420, its costs of goods sold are $413,890, and its net income is $117,220. Its gross margin ratio equals:

A) 40.5%.
B) 46.6%.
C) 31.5%.
D) 53.4%.
E) 28.3%.