Question

Swank clothiers had sales of 377,000 and cost of goods sold 329,000 what is gross profit mAargin

Answer 1

We have the following equation:

`\text{gross profit = sales - cost of goods}`

then, in this case we have:

`\text{gross profit = 377000-329000=}48000`

now we can calculate the gross profit margin with the following equation:

`\text{gross profit margin = }\frac{gross\text{ profit}}{sales}\cdot100`

then, we have:

`gross\text{ profit margin = }(48000)/(377000)\cdot100=12.73`

therefore, the gross profit margin is 12.73%