The following data relate to Company B. Other operating expenses 100 Cost of goo

Question

The following data relate to Company B.

Other operating expenses                                                            100

Cost of goods sold                                                                        650

Interest expense                                                                              50

Sales                                                                                            1,000

Income tax expense                                                                    150

        Given these data, compute Company B’s GROSS PROFIT PERCENTAGE (gross profit divided by sales).

  65%

  35%

  75%

  25%

  5%

  95%

  65%

  35%

  75%

  25%

  5%

  95%

Explanation / Answer

GROSS PROFIT PERCENTAGE = gross profit / sales * 100

= (1000- 650 -100) / 1000 * 100

= 25 %

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.