Net sales for the year were $510,000 and cost of goods sold was $357,000 for the companys existing products. A new product is presently under development and has an expected selling price of $70 per unit in order to remain competitive with similar products in the marketplace.

The dollar amount of gross profit and the gross profit ratio for the year were:

Multiple Choice

A) $153,000 and 70%, respectively.

B) $153,000 and 30%, respectively.

C) $357,000 and 70%, respectively.

D) $510,000 and 100%, respectively.