Consider the following: Code: $ \quad A= $ Gross profit to net sales ratio
$ \quad\quad\quad\mathrm{B}= $ Gross profit to cost of goods sold ratic Which equation is correct?

Question

Quizplus · Accepted Answer

The gross profit to net sales ratio (A) is calculated as the gross profit divided by net sales. The gross profit to cost of goods sold ratio (B) is calculated as the gross profit divided by the cost of goods sold. The relationship between these ratios is given by A = B / (1 + B), as net sales is the sum of cost of goods sold and gross profit.

Consider the Following: Code A= \quad A= A= Gross Profit to Net Sales Ratio

Consider the Following: Code $\quad A=$ Gross Profit to Net Sales Ratio