A company shows the following balances:

Cost of goods sold$217,000

Income tax expense 33,600

Operating expenses 172,000

Sales 550,000

Sales discounts 12,000

Sales returns and allowances 37,000

What is the gross profit margin?

Question 4 options:

1)

56.7%.

2)

34.3%.

3)

43.3%.

4)

39.5%.