Mega Skateboard Supplier had net sales of $2.4 million, its cost of goods sold was $1.3 million, and its net income was $.8 million. Its gross margin ratio equals:

45.83%

Explanation:

The Gross Margin Ratio is a profitability ratio . It compares the gross margin of a business to its net revenue.

The formula for calculating gross profit ratio is

Gross Profit Margin  ration  =  Net Sales− COGS

                          Net Sales

COGS is the cost of goods sold.

For Megascape board

Net sales= $2.4 million,

COGS =$1.3 million,

gross profit margin ratio = $2.4 - $1.3

     $2.4

=$1.1/$2.4 x 100

=45.83%