A company has ghe following account balances: Sales revenue $100,000; Sales Returns and Allowances $20,000; Sales Discounts $5,000; Cost of Goods Sold $40,000; Net Income $7,000. How much is the gross profit rate?

A) 20.0%

B) 26.7%

C) 46.7%

D) 25%

E) 75.0%

Please show all of your work! I am trying to learn all the steps.