Historically, in the retail jewelry industry, cost of goods sold averages 40% of sales. If next year's sales are expected to be $1,600,000, the gross profit forecast would be

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Gross profit is calculated as sales minus cost of goods sold. If cost of goods sold is 40% of sales, then it is $640,000 (40% of $1,600,000). Therefore, the gross profit is $1,600,000 - $640,000 = $960,000.

Historically, in the Retail Jewelry Industry, Cost of Goods Sold