Question

Last month, korey’s comics had $4,350 in net sales with a gross profit of $3,320 and a net income of $1,850. calculate korey’s gross profit margin.

a.42.5%
b.55.7%
c.76.3%
d.179.5%
please select the best answer from the choices providedabcd

Answer 1

C. 76.3%

Explanation:

To find Korey's gross profit margin, we can use the formula:

Gross Profit Margin = (Gross Profit / Net Sales) x 100%

We are given that Korey's net sales were $4,350 and gross profit was $3,320. Plugging these values into the formula, we get:

Gross Profit Margin = ($3,320 / $4,350) x 100%

Gross Profit Margin = 0.763 x 100%

Gross Profit Margin = 76.3%

Therefore, Korey's gross profit margin is c. 76.3%

Answer 2

c) 76.3%

`\hrulefill`

Explanation:

Gross profit margin is a percentage that shows how much money a company keeps from its sales after taking away the costs of making the products they sell. It helps us understand how well the company is managing its expenses and making a profit.

To calculate Korey's gross profit margin, we can use the formula:

`\boxed{\sf Gross \;Profit \;Margin =(Gross\;profit)/(Net\; Sales) * 100}`

Given information:

• Gross Profit = $3,320
• Net Sales (revenue) = $4,350

(Note: The net income of $1,850 is not related to the calculation of the gross profit margin).

Substitute the given values into the formula:

`\begin{aligned}\sf Gross \;Profit \;Margin& =\sf \left ((Gross\; Profit)/(Net\; Sales)\right) * 100}\\\\&=\sf \left ((3320)/(4350)\right) * 100}\\\\&=\sf 0.76321839 * 100}\\\\&=\sf 76.3\%\;(nearest\;tenth)\end{aligned}`

Therefore, Korey's gross profit margin is approximately 76.3% (rounded to the nearest tenth).