19. Fashion Retailers, Inc.s income statement for the year ended December 31, 20X8 included the following accounts:

Sales.$60,000,000

Cost of goods sold$36,000,000

Selling expenses (total)..$7,000,000

General and administrative expenses.$3,000,000

Income tax expense$3,500,000

What was the gross profit ratio for the year-ended December 31, 20X8?

a. 60.0%

b. 40.0%

37.5%

17.5%