Final answer:
The company's net sales can be calculated by dividing the gross profit of $58,400 by the gross profit percentage of 50%, resulting in net sales of $116,800.
Step-by-step explanation:
To calculate the company's net sales, we need to utilize the company's gross profit and the gross profit percentage. The gross profit percentage is the gross profit divided by net sales. Since we have a gross profit percentage of 50%, that means the gross profit is half of the net sales. As given, the gross profit is $58,400.
Here is the formula:
Net Sales = Gross Profit / Gross Profit Percentage
In this scenario:
Net Sales = $58,400 / 0.50
Net Sales = $116,800