Question

The following information relates to Smart Touch Learning for the year ended December​ 31, 2017​: Cash $ 50000​; Net Sales Revenue $ 200000​, Operating Expenses $ 70000​, Cost of Goods Sold $ 100000. What is the gross profit percentage for Smart Touch​ Learning?

Answer 1

The gross profit for Smart Touch Learning is calculated by subtracting the Cost of Goods Sold from Net Sales Revenue, leading to a gross profit percentage of 50%.

Step-by-step explanation:

To calculate the gross profit percentage for Smart Touch Learning, you would first need to find the gross profit in dollar terms. Gross profit is calculated by subtracting the Cost of Goods Sold (COGS) from Net Sales Revenue.

In this case, it would be $200,000 in Net Sales Revenue minus $100,000 in Cost of Goods Sold, resulting in a gross profit of $100,000.

To determine the gross profit percentage, you divide the gross profit by the Net Sales Revenue and then multiply by 100 to get a percentage. So, the gross profit percentage = ($100,000 / $200,000) * 100 = 50%.