Question

Given the information below, determine this organization's gross profit margin:

Net Sales Revenue $300,000
Cost of Goods Sold $150,000
Net Profit $20,000
Total Assets $250,00
15%
20%
50%
30%

Answer 1

To determine the organization's gross profit margin, calculate the gross profit and divide it by the net sales revenue. In this case, the gross profit margin is 50%

Step-by-step explanation:

To determine the organization's gross profit margin, we need to calculate the gross profit and divide it by the net sales revenue. The formula for calculating the gross profit is:

Gross Profit = Net Sales Revenue - Cost of Goods Sold

Using the given information, the gross profit would be $300,000 - $150,000 = $150,000.

Now, we can calculate the gross profit margin:

Gross Profit Margin = (Gross Profit / Net Sales Revenue) * 100

Plugging in the values, we get:

Gross Profit Margin = ($150,000 / $300,000) * 100 = 50%

Therefore, the organization's gross profit margin is 50%.