A Company Shows the Following Balances What Is the Gross Profit Rate?
A) 30%
B) 44

A company shows the following balances: $$\begin{array} { l r } \text { Sales Revenue } & \$ 2,500,000 \\\text { Sales Returns and Allowances } & 450,000 \\\text { Sales Discounts } & 50,000 \\\text { Cost of Goods Sold } & 1,400,000\end{array}$$ What is the gross profit rate?

A) 30%
B) 44%
C) 56%
D) 70%

Correct Answer:

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