Question

A company has net sales of $847,000 and cost of goods sold of $561,500. its net income is $101,200. the company's gross margin and operating expenses, respectively, are:

Answer 1

To solve for the gross margin:
Gross margin = net sales - cost of goods sold
Gross margin = $847,000 - $561,500
Gross margin = $285,500

To solve for the operating expenses:
Operating expenses = gross margin - net income
Operating expenses = $285,000 - $101,200
Operating expenses = $183,800