Question 1

Following is Stanleys income statement for the year (in millions):

STANLEY INC.
Income Statement
For the year ended December 31
($ millions)
Sales	$11,406.9
Cost of goods sold	7,425.3
Gross profit	3,981.6
Selling, general and administrative expenses	2,706.1
Other operating expenses	278.9
Operating income	996.6
Interest and other nonoperating expenses	178.2
Income before income tax	818.4
Income tax expense	271.6
Net income	$546.8

Compute Stanleys gross profit margin.

Select one:

a. 34.9%

b. 65.1%

c. 8.7%

d. 4.8%

e. None of the above