Question

During the current year, merchandise is sold for $8,100,000. The cost of the goods sold is $4,698,000. a. What is the amount of the gross profit? $fill in the blank 1 b. Compute the gross profit percentage

Answer 1

The gross profit is $3,402,000 and the gross profit percentage is 42%. These figures are calculated by subtracting the cost of goods sold from the sales revenue and then dividing the gross profit by the sales revenue respectively.

Step-by-step explanation:

To calculate the gross profit, we subtract the cost of goods sold from the sales revenue. So, for the merchandise sold for $8,100,000 with a cost of goods sold being $4,698,000, the gross profit would be:

Gross Profit = Sales Revenue - Cost of Goods Sold

Gross Profit = $8,100,000 - $4,698,000

Gross Profit = $3,402,000

To compute the gross profit percentage, we divide the gross profit by the sales revenue and then multiply by 100 to convert it to a percentage:

Gross Profit Percentage = (Gross Profit / Sales Revenue) * 100

Gross Profit Percentage = ($3,402,000 / $8,100,000) * 100

Gross Profit Percentage = 42%