Your firm has the following income statement items: sales of $52,000,000; income tax of $1,880,000; operating expenses of $9,000,000; cost of goods sold of $36,000,000; and interest expense of $800,000. compute the firm's gross profit margin.

30.77%

Explanation:

The computation of the gross profit margin is shown below:

Gross profit margin = (Gross profit ÷ Sales) × 100

where,

Gross profit would be

= Sales - costs of goods sold

= $52,000,000 - $36,000,000

= $16,000,000

And, the sales is $52,000,000

Now add these values to the formula above

So, the ratio would be equal to

= ($16,000,000 ÷ $52,000,000) × 100

= 30.77%