Companies may express their gross profit as a percentage of net sales or as a percentage of cost of goods sold. The following data are available on two different companies: Required:
a. Compute the gross profit as a percentage of cost of goods sold for Company A.
b. Compute the gross profit as a percentage of net sales for Company B.

Question

Companies may express their gross profit as a percentage of net sales or as a percentage of cost of goods sold. The following data are available on two different companies:  Required: 
a. Compute the gross profit as a percentage of cost of goods sold for Company A.
b. Compute the gross profit as a percentage of net sales for Company B.

Quizplus · Accepted Answer

The Answer of Companies may express their gross profit as a percentage of net sales or as a percentage of cost of goods sold. The following data are available on two different companies:  Required: 
a. Compute the gross profit as a percentage of cost of goods sold for Company A.
b. Compute the gross profit as a percentage of net sales for Company B.

Companies May Express Their Gross Profit as a Percentage of Net