Answer:
0.49
Explanation:
First, we need to compute gross profit. See computation of gross profit below;
Sales revenue
$190,000
Less :
Sales returns and allowance
($6,000)
Net sales
$184,000
Less:
Cost of goods sold
($93,000)
Gross profit
$91,000
Therefore,
Gross profit rate = Gross profit ÷ Sales
Gross profit = $91,000 ÷ $184,000
Gross profit rate = 0.49
