Jim had a very good quarter at his car lot with net sales reaching just over $456,000. This created a net income of $195,000. If Jim's operating expenses last quarter were $23,000, what was his gross profit margin?

Gross profit equals net income plus operating expenses: $195,000 + $23,000 = $218,000. Divide gross profit by net sales and multiply by 100: ($218,000 ÷ $456,000) × 100 ≈ 47.8%. The gross profit margin is 47.8%, choice D.

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