Company X has net sales revenue of $780,000,cost of goods sold of $343,200,and all other expenses of $327,600.The gross profit percentage is:
A)32%
B)56%
C)86%
D)14%

Question

Quizplus · Accepted Answer

Gross profit percentage is calculated by subtracting the cost of goods sold from net sales revenue and then dividing the result by net sales revenue.

Gross profit = net sales revenue - cost of goods sold
Gross profit = $780,000 - $343,200
Gross profit = $436,800

Gross profit percentage = (Gross profit / Net sales revenue) x 100
Gross profit percentage = ($436,800 / $780,000) x 100
Gross profit percentage = 56%

Therefore, the best choice is B) 56%.

Company X Has Net Sales Revenue of $780,000,cost of Goods