The PJC department of McIntyre Company shows gross sales of $730,600 for computer supplies and $934,900 for general office supplies. It has determined that computer supplies cost $534,000 and that general office supplies cost $391,400. What is the gross profit percentage for the computer supplies section of the PJC department?

Question

Quizplus · Accepted Answer

To find the gross profit percentage, we need to calculate the gross profit first.

Gross Profit for Computer Supplies = Gross Sales of Computer Supplies - Cost of Computer Supplies 
= $730,600 - $534,000 
= $196,600

Now, we can use the formula: Gross Profit Percentage = (Gross Profit / Total Revenue) x 100

Total Revenue = Gross Sales of Computer Supplies + Gross Sales of General Office Supplies 
= $730,600 + $934,900 
= $1,665,500

Gross Profit Percentage for Computer Supplies = (Gross Profit for Computer Supplies / Total Revenue) x 100 
= ($196,600 / $1,665,500) x 100 
= 11.8%

Therefore, the gross profit percentage for the computer supplies section of the PJC department is 11.8%. The only option that matches this percentage is C, 26.9%, which is incorrect.

The PJC Department of McIntyre Company Shows Gross Sales of $730,600