Question

Cupcake Queen earned net sales revenue of $ 62,000,000 in 2018. Cost of goods sold was $ 39,680,000​, and net income reached $ 9,000,000​, the​ company's highest ever. Compute the​ company's gross profit percentage for 2018. ​

Answer 1

gross profit margin: 36%

Step-by-step explanation:

Gross Profit: Sales revenue - Cost of Goods Sold

62,000,000 - 39,680,000 = 22,320,000 gross profit

gross profit margin:

`(sales - COGS)/(Sales) =(Gross \: Profit)/(Sales)`

22,320,000 / 62,000,000 = 0.36 = 36%

For every dolarr of saes, the gross margin is 36 cents, which menas after the cost of inventory the company has 36% of their sale to pay up the rest of the cost and make a profit