In the company sales were 480,000 sales returns and allowances were 30,000 and cost of goods sold was 288,000. The gross profit rate was:

a.64%
b.36%
c.40%
d.60%

company sales $ 480,000
LESS
sales returns and allowances were $30,000

sub total equals $ 450,000
LESS
cost of goods $ 288,000

sub total = gross margin equals $162,000

PROFIT RATE = 162,000/450,000

PROFIT RATE = 36%

The answer is B.