Net sales for the year were $1,250,000 and cost of goods sold was $925,000 for t
ID: 2478232 • Letter: N
Question
Net sales for the year were $1,250,000 and cost of goods sold was $925,000 for the company’s existing products. A new product is presently under development and will have an expected selling price of not more than $72 per unit in order to remain competitive with similar products in the marketplace.
Net sales for the year were $1,250,000 and cost of goods sold was $925,000 for the company’s existing products. A new product is presently under development and will have an expected selling price of not more than $72 per unit in order to remain competitive with similar products in the marketplace.
Explanation / Answer
gross profit= net sales - cost of goods sold
gross profit = 1250000 - 925000 =325000
gross profit ratio = gross profit/ net sales
gross profit ratio = 325000 / 1250000 = 0.26