Question

Financial information is presented below: Operating expense s $ 45,000 Sales returns and allowance s 3,000 Sales discount s 7,000 Sales revenu e 160,000 Remaining Time: 2 hours, 04 minutes, 55 seconds. Cost of goods sol d 96,000 Question Completion Status: The pro t margin would be

Answer 1

See below

Step-by-step explanation:

Sales revenue

$160,000

Sales discount

($7,000)

Sales return and allowance

($3,000)

Net sales

$150,000

Cost of goods sold

($96,000)

Gross income

$54,000

Operating expenses

($45,000)

Net income/ operating income

$9,000

Profit margin = (9,000/160,000) × 100

Profit margin = 56.25%