Question

A company shows the following balances:Sales Revenue$2,000,000Sales Returns and Allowances360,000Sales Discounts40,000Cost of Goods Sold1,120,000What is the gross profit percentage?

Answer 1

Answer: 30%

Step-by-step explanation:

Given that,

Sales Revenue = $2,000,000

Sales Returns and Allowances = $360,000

Sales Discounts = $40,000

Cost of Goods Sold = $1,120,000

Gross profit = Sales Revenue - Sales Returns and Allowances - Sales Discounts - Cost of Goods Sold

= $2,000,000 - $360,000 - $40,000 - $1,120,000

= $480,000

Gross profit percentage =
`(Gross\ profit)/(Net\ sales) *100`

=
`(480000)/(1600000) *100`

=0.30 × 100

= 30%