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For its 2016 fiscal year, Dolan Company reported sales of $3,600,000, sales discount of $100,000, cost of goods sold of $2,100,000, and net income of

For its 2016 fiscal year, Dolan Company reported sales of $3,600,000, sales discount of $100,000, cost of goods sold of $2,100,000, and net income of $140,000. The company's gross profit ratio for the year is:

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60%.

4%.

10%

40%.

None is correct.

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