Lennox Limited reported sales of $5,000,000, cost of goods sold of $3,200,000, operating expenses of $1,400,000, and income tax expense of $160,000 for the year.What is the gross profit percentage for the year?

Question

Quizplus · Accepted Answer

Gross profit percentage is calculated as (Gross Profit / Sales) * 100. Gross Profit is Sales minus Cost of Goods Sold, which is $5,000,000 - $3,200,000 = $1,800,000. Therefore, the gross profit percentage is ($1,800,000 / $5,000,000) * 100 = 36%.

Lennox Limited Reported Sales of $5,000,000, Cost of Goods Sold