The following data are given for Beta Company:

The following data are given for "Beta Company": \begin{tabular}{ll} Assets & \\ Property, plant and equipment & 215,000 \\ Inventory & 27,000 \\ Accounts receivable (net) & 30,000 \\ Cash and short-term investments & 40,500 \\ Total Assets & 312,500 \\ \hline \end{tabular} Equity and Liabilities \begin{tabular}{lc} \hline Common Stock & 177,500 \\ Non-current liabilities & 75,000 \\ Current liabilities & 60,000 \\ Total Equity and Liabilities & 312,500 \end{tabular} Income Statement Sales revenue 90,000 CostofgoodssoldGrossmargin40,00050,000 Operating expenses Net income Number of common shares 5,00020,000 Market price per share 20 The gross profit margin ratio for "Beta Company" is (round up to one decimal): c a. 22.0% c b. 40%