### Gross margin percentage problem

Assignment Help Accounting Basics
##### Reference no: EM13147294

Litten Corporation's most recent income statement appears below:

Sales (all on account)..........................\$791,000
Cost of goods sold...............................412,000
Gross margin.....................................379,000
Net operating income.............................165,000
Interest expense..................................34,000
Net income before taxes..........................131,000
Income taxes......................................40,000
Net income........................................91,000

The gross margin percentage is closest to:

A) 92.0%

B) 416.5%

C) 24.0%

D) 47.9%

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