Question

The following formula is used in economics to find a company's gross profit rate [p], where [s] is the net sales and [c] is the cost of goods sold. [p = dfracs - cs] rearrange the formula to highlight the cost of goods sold. [c= ]

Answer 1

To find the cost of goods sold (c) in terms of net sales (s) and gross profit rate (p), the equation is rearranged algebraically to c = s(1 - p).

Step-by-step explanation:

To rearrange the given formula gross profit rate p = \( \frac{s - c}{s} \) to solve for cost of goods sold c, we need to perform some algebraic manipulations. The goal is to isolate c on one side of the equation. We start by multiplying both sides of the equation by s to get rid of the fraction:

• ps = s - c

Next, we add c to both sides and subtract ps from both sides to isolate c:

• c + ps = s
• c = s - ps

Breaking it down further, we can factor out s on the right-hand side:

• c = s(1 - p)

Now we have the cost of goods sold c in terms of net sales s and gross profit rate p. Therefore, the correct option to express c is: c = s(1 - p)