During 2014, Carlita's competitor Farside had double the sales of Carlita, but it also earned a gross margin of $30,000. What was Farside's 2014 gross margin percentage?

25%

50%

12.5%

Carlita Company Income Statement for Year Ending December 31.2014 Sales.. $120,000 Less: Cost of Goods Sold. 90,000 Gross Margin...... $30,000 Less: Operating Expenses... 10,000 Operating Income.. $20,000 Less: Interest Expense. 2,000 Income Before Taxes.. $18,000 Less: Tax Expense...... 6,000 Net Income..... $12,000