Question

Router Software earned net sales revenue of $64,000,000 in 2024. Cost of goods sold was $42,240,000, and net income reached $7,000,000, the company's highest ever. Compute the company's gross profit percentage for 2024. First, select the formula. Then enter the applicable amounts and calculate the gross profit percentage.

Answer 1

The gross profit percentage for Router Software in 2024 is 34%.

Step-by-step explanation:

The gross profit percentage is calculated by dividing the gross profit by the net sales revenue and multiplying by 100.

Gross profit = Net sales revenue - Cost of goods sold

Gross profit percentage = (Gross profit / Net sales revenue) * 100

Using the given information:

Gross profit = $64,000,000 - $42,240,000 = $21,760,000

Gross profit percentage = ($21,760,000 / $64,000,000) * 100 = 34%.