Answer:
Gross Profit rate = 31.6%
Explanation:
Gross Profit rate = [tex]\frac{Gross\ Profit}{Total\ Sales} \times 100[/tex]
Gross Profit = Total Sales - Cost of Goods Sold.
Operating expenses are not considered while calculating gross profit.
Here, with the given information, gross profit shall be:
Sales Revenue = $250,000
Cost of goods sold = $171,000
Gross profit = $250,000 - $171,000 = $79,000
Gross profit rate = [tex]\frac{79,000}{250,000} \times 100 = 31.6[/tex]
Gross Profit rate = 31.6%
