Gross profit ratio is computed by dividing gross profit by:Group of answer choicesfinancial expenses.cost of sales.net sales.operating expenses.

A gross profit ratio of 55% indicates that:Multiple Choicefor each $1 of net income, the company generates $0.55 in gross profit.for each $1 of sales, the company generates $0.55 in gross profit.for each $1 of gross profit, the company generates $0.55 in net income.for each $1 of gross profit, the company generates $0.55 in sales.

Gross profit is:Group of answer choicesthe amount left over after cost of goods sold is subtracted from net salesnet sales less selling expensessales less sales discountsnet sales less operating expenses

Explain how to compute gross profit by completing the following sentence. Gross profit is calculated by taking the net (sales/costs) of a product and (adding/subtracting) the cost of the goods sold.

What factors affect a business’s gross profit ratio, i.e. what can cause the gross profit ratio to increase and what can cause it to decrease?

After gross profit is calculated, operating expenses are deducted to determine: Group of answer choices gross margin. gross profit on sales. profit (loss). sales margin.