Net sales for the year were $325,000 and cost of goods sold was $240,500 for the company's existing products.A new product is presently under development and has an expected selling price of $40 per unit in order to remain competitive with similar products in the marketplace. The dollar amount of gross profit and the gross profit ratio for the year were:

Question

Quizplus · Accepted Answer

Gross profit is calculated as net sales minus cost of goods sold, which is $325,000 - $240,500 = $84,500. The gross profit ratio is gross profit divided by net sales, which is $84,500 / $325,000 = 0.26 or 26%.

Net Sales for the Year Were $325,000 and Cost of Goods