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A Company Had Net Sales of $340,500, Its Cost of Goods

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A company had net sales of $340,500, its cost of goods sold was $257,000, and its net income was $13,750. The company's gross margin ratio equals 24.5%.
Gross Margin Ratio = (Sales - Cost of Goods Sold)/Sales
Gross Margin Ratio = ($340,500 - $257,000)/$340,500 = 24.5%

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