Question

earned net sales revenue of $62,000,000 in 2016. Cost of goods sold was $41,540,000​, and net income reached $9,000,000​, the​ company's highest ever. Compute the​ company's gross profit percentage for 2016. g

Answer 1

33%

Step-by-step explanation:

The gross profit percentage is also known as the gross margin which is the ratio of the gross profit to sales. it shows the amount of gross profit earned per $1 of revenue made.

The gross profit is the difference between the sales and the cost of goods sold.

Gross profit for 2016

= $62,000,000 - $41,540,000

= $20,460,000

Gross profit percentage

= $20,460,000 /$62,000,000

= 0.33

= 33%