LOST, Inc.'s reported the following (selected) information on its most recent financial statements: Sales $800 Income Tax Expense $15 Interest Expense $6 Cost of Goods Sold $460 Salaries Expense $215 The company's gross profit percentage last period was 48%. Which of the following statements is TRUE in regard to the company's gross profit percentage? (GP % = Gross Profit / Sales Revenues)

Sales	$800
Income Tax Expense	$15
Interest Expense	$6
Cost of Goods Sold	$460
Salaries Expense	$215

Answer: The company is earning 42.5 cents in gross profit on each dollar of sales.

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