Question

The following information relates to Smart Touch Learning for the year ended December 31, 2017: Cash 50,000; Net Sales Revenue 200, 000, Operating Expenses 70, 000, Cost of Goods Sold 100, 000. What is the gross profit percentage for Smart Touch Learning?

Answer 1

The gross profit percentage for Smart Touch Learning is 50%.

Step-by-step explanation:

To calculate the gross profit percentage for Smart Touch Learning, we first need to find the gross profit. Gross Profit is calculated by subtracting the Cost of Goods Sold from Net Sales Revenue. In this case, Net Sales Revenue is $200,000 and Cost of Goods Sold is $100,000, so the Gross Profit is $200,000 - $100,000 = $100,000.

Next, we can calculate the Gross Profit Percentage by dividing the Gross Profit by Net Sales Revenue and multiplying by 100. So, the Gross Profit Percentage for Smart Touch Learning is ($100,000 / $200,000) * 100 = 50%.