Question

Sandwich Art earned net sales revenue of $ 62,000,000 in 2018. Cost of goods sold was $ 40,920,000​, and net income reached $ 7,000,000​, the​ company's highest ever. Compute the​ company's gross profit percentage for 2018.

Answer 1

The​ company's gross profit percentage for 2018 was 34%

Step-by-step explanation:

The gross profit percentage measures how efficiently a company uses its materials and labor to produce and sell products profitably. The gross profit percentage is calculated by the following formula:

Gross Profit percentage = (Gross profit/Net Sales )x100%

In there:

Gross profit = Net Sales − Cost of Goods Sold

Sandwich Art earned net sales revenue of $ 62,000,000 in 2018. Cost of goods sold was $ 40,920,000.

Gross profit = $62,000,000 - $40,920,000 = $21,080,000

Gross Profit percentage = ($21,080,000/$62,000,000)x100% = 34%

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